Oct 17(Reuters) - Mubadala Capital, a unit of Abu

Dhabi's sovereign wealth fund, is working on a potential deal to

acquire billboard operator Clear Channel Outdoor ( CCO ),

Bloomberg News reported on Friday, citing people familiar with

the matter.

Activist investor Anson Funds Management had pushed for the

sale of Clear Channel last month, the report said, and comes at

a time when dealmaking in outdoor advertising has been lately

heating up.

The San Antonio, Texas-based company has about $6.4 billion

in debt, the report added.

While the asset management firm has a sprawling global

portfolio, it is not a major player in US media investments.

The potential take-private move is the latest from Mubadala

Capital, which earlier this year had sold a minority stake in

its company to investment firm TWG Global led by Guggenheim

Partners founder Mark Walter and financier Thomas Tull.