Clear Channel buyers sue banks over $20 bln deal - Business

Reuters - Stocks were little changed on Thursday, as optimism about potential deals were overshadowed by some weak economic data and Federal Reserve Chairman Ben Bernanke's call for some banks to raise more capital.

Icahn to fight Yahoo to accept Microsoft bid (Reuters)

Reuters - Carl Icahn launched a proxy battle to force Yahoo Inc to reopen buyout talks with Microsoft Corp , the billionaire investor said in a letter to the Internet company on Thursday.

CBS to buy web publisher CNET (Reuters)

Reuters - CBS Corp said on Thursday it would buy web media company CNET Networks Inc for about $1.8 billion to boost the television broadcaster's reach across the Internet.

Bernanke urges banks to raise capital if needed (Reuters)

Reuters - Financial market turmoil underscores the need for "generous" capital cushions, and banks need to actively raise money as needed, U.S. Federal Reserve Chairman Ben Bernanke said on Thursday.

General Electric looks to sell appliance unit: report (Reuters)

Reuters - General Electric Co is looking to sell its appliance unit in an auction that could bring in $5 billion to $8 billion, The Wall Street Journal reported on its Web site on Wednesday.

Industrial output plunges, second big drop in 2 months (AP)
AP - The nation's industrial output plunged in April, reflecting big cutbacks in autos and other manufacturing industries.

NEW YORK (Reuters) - The private equity firms trying to buy U.S. radio operator Clear Channel Communications Inc on Wednesday filed lawsuits against the banks that agreed to fund the $20 billion buyout to force them to finance it.

By Megan Davies
NEW YORK (Reuters) - The private equity firms trying to buy U.S. radio operator Clear Channel Communications Inc (CCU.N) on Wednesday filed lawsuits against the banks that agreed to fund the $20 billion buyout to force them to finance it.
The banks were to provide more than $22 billion financing and earn more than $400 million in fees, but they balked when the debt markets deteriorated, and asked for terms of the deal to be changed, according to a copy of one of the suits.
Thomas H. Lee Partners and Bain Capital Partners LLC filed complaints in New York and Texas against Citigroup Inc (C.N), Morgan Stanley (MS.N), Credit Suisse Group (CSGN.VX), Royal Bank of Scotland Group Plc (RBS.L), Deutsche Bank AG (DBKGn.DE) and Wachovia Corp (WB.N).
Clear Channel is also joining THL and Bain in a complaint filed in Texas against the banks to force completion of the deal. That suit says it stems from defendants' "tortious interference" with the deal which "if allowed to continue and succeed, could result in immeasurable damages" exceeding $26 billion, according to a copy of the suit.
"I expect that they had reached an impasse in negotiations and that's an attempt to spur either a settlement or receive damages, if the game is over," said William Bates, a mergers & acquisitions partner at King & Spalding. Bates said he expected the sides would settle rather than go to trial.
Clear Channel struck the $39.20-a-share deal to be bought by private equity firms Thomas H. Lee and Bain at the height of the private equity boom last year.
But the market has changed significantly since then, with the cost of financing leveraged loan debt skyrocketing and banks unwilling to take losses on loans they agreed to finance in better times.
The banking group, led by Citigroup and Deutsche Bank, faced losses on the deal of about $3 billion to $4 billion, said a source familiar with the situation who did not want to be identified because the person was not authorized to speak.

Other news from Business category:

JC Penney profit drops 50 percent - 15, May 2008
NEW YORK (Reuters) - J.C. Penney Co Inc reported a 50 percent drop in first-quarter profit on Thursday as weak consumer demand forced the mid-tier department store operator to cut prices to clear unsold merchandise.

More
Jobless claims rise 6,000 in latest week - 15, May 2008
WASHINGTON (Reuters) - The number of U.S. workers filing claims for initial jobless benefits rose by 6,000 in the latest week while the number on benefit rolls after a first week of aid hit a four-year high, a government report showed on Thursday.

More
CBS to buy web publisher CNET - 15, May 2008
NEW YORK (Reuters) - CBS Corp said on Thursday it would buy web media company CNET Networks Inc for about $1.8 billion to boost the television broadcaster's reach across the Internet.

More
Bernanke urges banks to raise capital if needed - 15, May 2008
CHICAGO (Reuters) - Financial market turmoil underscores the need for "generous" capital cushions, and banks need to actively raise money as needed, U.S. Federal Reserve Chairman Ben Bernanke said on Thursday.

More
Icahn to fight Yahoo to accept Microsoft bid - 15, May 2008
NEW YORK (Reuters) - Carl Icahn launched a proxy battle to force Yahoo Inc to reopen buyout talks with Microsoft Corp, the billionaire investor said in a letter to the Internet company on Thursday.

More
Stocks flat as economic concerns offset deals - 15, May 2008
NEW YORK (Reuters) - Stocks were little changed on Thursday, as optimism about potential deals were overshadowed by some weak economic data and Federal Reserve Chairman Ben Bernanke's call for some banks to raise more capital.

More
Fed's Yellen says key rate is probably low enough - 15, May 2008
TACOMA, Washington (Reuters) - A top Federal Reserve official said on Wednesday that interest rates have "come way down" in recent months, and with inflation looming the central bank's key lending rate has probably been cut enough for now, despite risks t
More
Agricole to sell assets, restructure Calyon - 15, May 2008
PARIS (Reuters) - Credit Agricole , France's biggest retail bank, said on Thursday it would sell off assets and restructure its Calyon investment banking arm as it confirmed a 5.9 billion euro ($9.1 billion) rights issue.

More
AIG chairman says board stands by CEO Sullivan - 15, May 2008
NEW YORK (Reuters) - American International Group Inc's chairman said on Wednesday the global insurer's board is backing Chief Executive Martin Sullivan despite some anger from investors over two quarters of record losses.

More
Judge rejects Countrywide's arguments: report - 15, May 2008
NEW YORK (Reuters) - Directors and officers of mortgage lender Countrywide Financial must answer shareholder accusations of insider trading and failure to monitor lending practices that led to the company's collapse, a federal judge in California has rul
More

Software News

Designer Miyamoto makes video games pulse with life (USATODAY.com)
USATODAY.com - NEW YORK - Shigeru Miyamoto, the father of iconic Nintendo mascot Mario, among many others, doesn't just bring characters to life in his video games. He injects his life into his creations. That's why his latest project, Wii Fit, which arrives in stores Wednesday, is not really a game at all. It's a $90 software-and-gadget fitness package for Nintendo's revolutionary Wii, reflecting Miyamoto's interest in his own physical health. Wii Fit, which comes with a balance board, has a built-in virtual trainer that helps players with yoga, aerobics and muscle toning.

Adobe refreshes Flash Player (InfoWorld)
InfoWorld - Facing serious challenges to its dominance in the RIA (rich Internet application) space, Adobe Systems will refresh its bread-and-butter Flash Player technology Thursday with capabilities that could provide an edge on the RIA battleground.

IBM Boosts BlackBerry Access to Cognos, Lotus Software (PC World)
PC World - IBM has released software that allows BlackBerry users to access more of its applications, including its Cognos business...

New York Stock Exchange Runs Trades On Red Hat Linux (TechWeb)
TechWeb - InformationWeek - The conversion to Linux followed the acquisition of the Euronext exchange in 2007, and the open source operating system is now powering the NYSE's mission-critical trading systems.

Software Piracy On The Rise, Study Finds (TechWeb)
TechWeb - InformationWeek - Rates of pirated software ranged from a high of 93% in Armenia to a low of 20% in the United States, according to the 2007 BSA and IDC Global Software Piracy study.

Hacker Writes Rootkit for Cisco's Routers (PC World)
PC World - A security researcher has developed malicious rootkit software for Cisco Systems' routers, a development that has placed...

JC Penney profit drops 50 percent - 15, May 2008

Jobless claims rise 6,000 in latest week - 15, May 2008

CBS to buy web publisher CNET - 15, May 2008

Bernanke urges banks to raise capital if needed - 15, May 2008

Icahn to fight Yahoo to accept Microsoft bid - 15, May 2008

Stocks flat as economic concerns offset deals - 15, May 2008

Fed's Yellen says key rate is probably low enough - 15, May 2008

Agricole to sell assets, restructure Calyon - 15, May 2008

AIG chairman says board stands by CEO Sullivan - 15, May 2008

Judge rejects Countrywide's arguments: report - 15, May 2008