Clear Channel could get higher bid

NEW YORK (CNNMoney.com) -- Two private equity firms seeking to acquire No. 1 radio station operator Clear Channel Communications Inc. have agreed to raise their $26 billion bid in an effort to convince reluctant shareholders to approve the deal, according to a published report.

The New York Times said in a story for its Monday editions that Bain Capital and Thomas H. Lee Partners have sent a letter to the Clear Channel (Charts) board offering several proposals. Clear Channel agreed to be acquired by the two firms last November in a deal that includes assumption of debt.

Among them, according to the Times, would allow shareholders to invest in a small part of the deal, so that they would stand to gain even after the sale should the company be successful.

But the Times said the proposed sweetened deal would not add the $1.50 a share in value investors have been hoping for.

The paper said several major investors, including Fidelity Investments, have indicated they'll oppose the deal when shareholders vote on it Thursday.

Clear Channel shares closed Friday at $36.24, up 19 cents.

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