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Update 7:20 pm: Adds channel comment erasure.
external channel scan (New York Stock Exchange: CCO) up 3% After hours of deliberation as activist Legion Partners pays the billboard company to assess the sale of the entire company.
Legion Partners, who was an investor in the company Since 2021, it has revealed that it has a 5.1% stake in Clear Channel Outdoor (CCO) and wants the company to speed up its strategic review, according to a 13d filing Tuesday.
Legion Partners wants Clear Channel Outdoor (CCO) to accelerate the sale to Northern Europe, kick-start the sale to Latin America, consider selling select US assets and explore selling the entire company at the same time.
“Ultimately, we believe the Board should accelerate and expand its pursuit of strategic alternatives for CCO shares to achieve full and fair value, including the potential sale of the entire company,” Legion Partners wrote in a letter to the CCO’s board.
Legion Partners argued in the letter that both strategic and financial parties may be interested in purchasing the entire company.
“Clear Channel’s board of directors and management team always welcome constructive conversations with our shareholders, including Legion,” the company said in a statement. Our ongoing review of alternatives to our European companies and assessment of a range of other strategic opportunities to enhance value.”
Legion Partners sees value as the sum of the parts for Clear Channel Outdoor (CCO) based on 2024 attributes. EBITA is valued at $3.57, which is up 230% from the current price.
The story was reported earlier by Bloomberg.
Clear Channel (CCO) shares were down 13% a week ago when Billboard reported first-quarter results and provided guidance.
The net channel overdraft (CCO) is 9.9%.