Clear Channel, the world's largest concert promoter was today identified among investors plotting a takeover of the Mean Fiddler music group.
Clear Channel has joined up with Irish concert promoter MCD to acquire the 35 per cent stake held in Mean Fiddler by its founder, Vince Power.
The two companies will spend €12.9 million through their Hamsard investment vehicle to buy out Mr Power, who set up Mean Fiddler in North London more than 20 years ago.
Mean Fiddler currently owns a string of music venues such as London's Astoria, the Reading rock festival and 34 per cent of the Glastonbury music festival.
Takeover interest first emerged last month when Mean Fiddler revealed it had received a preliminary approach and today's deal with Mr Power - worth 60p a share - hinges on Hamsard launching a formal offer within the next 30 days.
A statement from MCD and Clear Channel said a firm offer was not a foregone conclusion and it reserved the right to bid at a price below 60p per share.
MCD is headed by festival promoter Denis Desmond and has steadily built up his stake in the firm to become its second-biggest shareholder with 24.3 per cent.
Mr Power has always insisted that the investment by MCD was a positive move for the company by providing it with "increased bargaining power with both artists and suppliers".
But the interest from Clear Channel is more of a surprise even though the US entertainment firm has significant assets in the UK where it owns, operates or exclusively books 28 venues including the Grand Opera House in York and Birmingham's Alexandra Theatre.
Clear Channel, which also has radio broadcasting and outdoor advertising divisions, generated sales of $9.4 billion last year with entertainment venues accounting for around 29 per cent of this total.
PA