Hedge fund winners from Clear Channel settlement
Jonathon Jacobson and Richard Grubman, the co-founders of Highfields Capital, the US hedge fund, are expected to benefit significantly from the $27bn leveraged buyout of radio giant Clear Channel Communications, which is about to be settled.
Highfields, which owns almost 8% of Clear Channel's outstanding shares, played an instrumental role bringing the Wall Street banks providing the debt financing and the buyers, THL Partners and Bain Capital, back around the table. Highfields is expected to own part of the newly private company, according to reports in the New York Post. The banks include, Morgan Stanley Deutsche Bank, Credit Suisse, Wachovia, Citigroup and Royal Bank of Scotland.
News of settlement talks drove the company's stock up nearly 10% to $32.87. Jacobson, formerly of Harvard Management Company, and Grubman, formerly of Corporate Value Partners, founded Highfields in 1998. It currently holds about $11bn under management.
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