CWIPPERMAN
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- Joined
- Jul 24, 2002
Final bidders set for Vivendi auction
NBC, Bronfman group, Viacom seen likely to make offers
-Reuters-
LONDON, Aug. 18 At least three Hollywood contenders are expected to line up for the final leg of Vivendi Universals multi-billion dollar entertainment sale on Monday, with U.S. television network NBC earmarked for pole position.
THREE MONTHS INTO a tangled auction that has seen bidders come and go, Vivendi has asked remaining would-be buyers to come forward with their best offers for the Universal film, TV and theme park business ahead of a board meeting later this month.
General Electrics NBC is positioned as the front-runner heading into Mondays deadline, with other final contenders likely to include a team led by Edgar Bronfman Jr., media giant Viacom and potentially Liberty Media Corp. (MSNBC is Microsoft-NBC joint venture.)
The media heavyweights are competing for some of Hollywoods best-known assets including Universal Pictures, home to Hollywood movies The Hulk and The Scorpion King, the USA Network cable television business, and Universal theme parks.
Paris-based Vivendi has told contenders it wants $14 billion for the U.S. entertainment business but most bids are likely to fall short of that, with most contenders valuing the assets at least $1 billion lower, sources have said.
First-round bids were around $11 billion and reaching $14 billion would be a stretch for most bidders, said one source.
While some bidders are expected to submit final offers on Monday, others may simply notify Vivendi of their intention to meet certain parameters as they continue negotiations over their proposals, sources familiar with the auction said.
Vivendi Chief Executive Jean-Rene Fourtou wants to make a decision by the end of August or the beginning of September on whether to select a contender for final talks or opt for a flotation instead, other sources have said.
There is still a profoundly uncertain outcome, said one source involved in the auction.
$14 BILLION DREAM
Fourtou, who led a charge to drag Vivendi back from the brink of collapse last year after taking the reins from Jean-Marie Messier, put the Universal business up for sale earlier this year to bring the groups huge debts under control.
Despite Fourtous efforts to whip up a heated auction, the field of bidders has dwindled over the past few weeks, as contenders balked at Vivendis $14 billion price tag.
Metro Goldwyn Mayer recently walked away, cable giant Comcast Corp. decided not to bid last week and oil billionaire Marvin Davis was eliminated in the first round.
A joint venture with NBC may now be Vivendis best hope of nearing its price tag.
Under that proposal, Vivendi would take a minority stake in a venture that would combine NBCs cable channels with Vivendis U.S. entertainment assets. Such a deal may not offer Vivendi any up-front cash, but the media giant could potentially monetise its stake at some point in the future, sources have said.
Some observers suggest Vivendi could find a bank to provide a cash advance on the stake to help reach its goal of raising 7.0 billion euros ($7.89 billion) from selling assets this year.
Among other contenders, Bronfmans team is preparing to deliver a second-round bid for VUE, sources said.
But the Vivendi vice chairmans chances are seen as slim.
Viacom has continued negotiations with Vivendi but is still only interested in the cable television business. Fourtou has kept an open mind to such proposals as he may be able to raise more money by just selling the prized cable TV business.
Finally, Liberty Media has kept its cards close to its chest but said last week it was still interested in the assets.
Liberty was seen as the lead contender in the early stages of the auction but later pulled back from negotiations.
Its always the least likely one that ends up winning, said one source involved in the auction.
http://www.msnbc.com/news/953865.asp?0cv=CB10
NBC, Bronfman group, Viacom seen likely to make offers
-Reuters-
LONDON, Aug. 18 At least three Hollywood contenders are expected to line up for the final leg of Vivendi Universals multi-billion dollar entertainment sale on Monday, with U.S. television network NBC earmarked for pole position.
THREE MONTHS INTO a tangled auction that has seen bidders come and go, Vivendi has asked remaining would-be buyers to come forward with their best offers for the Universal film, TV and theme park business ahead of a board meeting later this month.
General Electrics NBC is positioned as the front-runner heading into Mondays deadline, with other final contenders likely to include a team led by Edgar Bronfman Jr., media giant Viacom and potentially Liberty Media Corp. (MSNBC is Microsoft-NBC joint venture.)
The media heavyweights are competing for some of Hollywoods best-known assets including Universal Pictures, home to Hollywood movies The Hulk and The Scorpion King, the USA Network cable television business, and Universal theme parks.
Paris-based Vivendi has told contenders it wants $14 billion for the U.S. entertainment business but most bids are likely to fall short of that, with most contenders valuing the assets at least $1 billion lower, sources have said.
First-round bids were around $11 billion and reaching $14 billion would be a stretch for most bidders, said one source.
While some bidders are expected to submit final offers on Monday, others may simply notify Vivendi of their intention to meet certain parameters as they continue negotiations over their proposals, sources familiar with the auction said.
Vivendi Chief Executive Jean-Rene Fourtou wants to make a decision by the end of August or the beginning of September on whether to select a contender for final talks or opt for a flotation instead, other sources have said.
There is still a profoundly uncertain outcome, said one source involved in the auction.
$14 BILLION DREAM
Fourtou, who led a charge to drag Vivendi back from the brink of collapse last year after taking the reins from Jean-Marie Messier, put the Universal business up for sale earlier this year to bring the groups huge debts under control.
Despite Fourtous efforts to whip up a heated auction, the field of bidders has dwindled over the past few weeks, as contenders balked at Vivendis $14 billion price tag.
Metro Goldwyn Mayer recently walked away, cable giant Comcast Corp. decided not to bid last week and oil billionaire Marvin Davis was eliminated in the first round.
A joint venture with NBC may now be Vivendis best hope of nearing its price tag.
Under that proposal, Vivendi would take a minority stake in a venture that would combine NBCs cable channels with Vivendis U.S. entertainment assets. Such a deal may not offer Vivendi any up-front cash, but the media giant could potentially monetise its stake at some point in the future, sources have said.
Some observers suggest Vivendi could find a bank to provide a cash advance on the stake to help reach its goal of raising 7.0 billion euros ($7.89 billion) from selling assets this year.
Among other contenders, Bronfmans team is preparing to deliver a second-round bid for VUE, sources said.
But the Vivendi vice chairmans chances are seen as slim.
Viacom has continued negotiations with Vivendi but is still only interested in the cable television business. Fourtou has kept an open mind to such proposals as he may be able to raise more money by just selling the prized cable TV business.
Finally, Liberty Media has kept its cards close to its chest but said last week it was still interested in the assets.
Liberty was seen as the lead contender in the early stages of the auction but later pulled back from negotiations.
Its always the least likely one that ends up winning, said one source involved in the auction.
http://www.msnbc.com/news/953865.asp?0cv=CB10
