One of the bidders for the Vivendi Universal Entertainment (VUE) portfolio of businesses is understood to have been eliminated from the auction process, according to a report in today’s Financial Times.
The paper says that Universal Partners, the consortium led by US oil billionaire Marvin Davis, has been ruled out by Vivendi, as its offer included the acquisition of the Universal Music division, which Vivendi has decided to retain.
Vivendi received the bids for assessment last week (see Vivendi To Assess US Entertainment Bids) and it is understood that some bidders are interested in buying the music division as well as VUE’s film studios, theme parks and cable channels. However, the FT reports that Vivendi’s Board has voted to retain the music business.
It is not clear whether the other bids that included Universal Music are still being considered by Vivendi, although the FT speculates that they may be asked to rebid with an offer for VUE alone.
Vivendi has not commented on the details of the auction process, saying: “After two months of work, the process is moving at sustained pace and a very significant competition has arisen. All potential acquirers or partners for VUE have made a first proposal with various perimeters, valuations and other conditions as expected. In depth negotiations will now be pursued with selected bidders.”
