Confusion surrounds the buyout of Clear Channel Communications (CCU.N: Quote, Profile, Research) due to tensions between the private equity companies behind the deal and the banks that have agreed to finance it, according to a report in the Wall Street Journal on Thursday.

The paper said it was unclear whether the deal would close even as a key deadline approaches by the end of next week.

Citing people close to three of the five banks funding the deal, the Journal reported the syndicate of banks was prepared to go ahead with the deal but blamed private equity firms Thomas H. Lee and Bain Capital for delaying the close. It said people close to the equity firms say the banks are holding up the deal.

The private equity firms agreed to pay $39.20 or nearly $20 billion for Clear Channel last May. Clear Channel's shares closed down $3.20 to $32.60 on Wednesday.

There have been concerns in the market about the ability of the firms to complete the buyout because the recent credit market turmoil has made financing large leveraged deals difficult.

Clear Channel was not immediately available for comment.

(Published by Reuters March 20, 2008)