Vivendi Universal (VU) has been offered E15 billion for its US and European entertainment assets, an offer which it has so far declined, according to reports.
The French media group has said that its music and entertainment businesses are not up for sale, although it is thought that chief executive, Jean-René Fourtou, would seriously look at any bid in the region of E25 billion.
The E15 billion informal offer came from a group of investors led by Texan oil billionaire, Marvin Davis. Fourtou believes that this undervalues the assets, according to press reports.
Things are complicated for Fourtou as VU really needs the cash if it is to succeed in plans to take a 26% stake in French telecoms group Cegetel (see Vivendi Talks To Bankers About Cegetel Bid). Vivendi is fighting for the stake in with UK telecoms group, Vodafone. Whilst VU has a pre-emptive right to buy the interest, currently held by BT, Vodafone is in a much healthier financial position.
