Clear Channel to Buy Universal Outdoor

Clear Channel Communications Inc. said it agreed to buy Universal Outdoor Holdings Inc. for about $1.7 billion in stock and debt, a move to expand the media company’s ownership of billboards. Clear Channel said it is offering 0.67 share, worth $42.42, for each Universal Outdoor share, a 2.2% premium over Universal Outdoor’s closing price of $41.50 on Nasdaq. Clear Channel said it will assume $495 million of Chicago-based Universal Outdoor’s outstanding debt as part of the transaction. The transaction would give San Antonio-based Clear Channel 88,000 billboard display faces in 31 U.S. markets, including 15 markets it was not in. Clear Channel owns 170 radio stations and 18 television stations. It currently owns 50,000 billboard faces. Clear Channel shares fell $1.06 to close at $62.31 on the NYSE.