ISS Advises Clear Channel Shareholders Against Increased Bid

Influential proxy advisory service ISS on Tuesday recommended shareholders vote against a $19.5 billion bid to take U.S. radio station operator Clear Channel Communications private, according to a document obtained by Reuters.

ISS, which advises fund managers and pension funds how to vote on various issues, recommended on March 29 that shareholders oppose Thomas H. Leeand Bain Capital's $36.70 a share, or $19 billion, bid, put forth in November, arguing that it undervalued the company.

Under pressure from some shareholders, the bidders in April raised their offer to $39 a share, or $19.5 billion.

ISS said in the document, dated May 1, that the sweetened bid was not compelling enough for it to change its recommendation.

Shareholders are scheduled to vote on the deal on May 8.

ISS was not immediately available for comment.