Edgar Bronfman Jnr, vice-chairman at Vivendi Universal, has called on directors to accept his bid for the group’s US entertainment assets rather than merge with TV network NBC.
The media giant aims to raise $14 billion from the sale of the film studios, cable channels and theme parks that make up Vivendi Universal Entertainment (VUE). Following the withdrawal of Liberty Media, the bidding war has been reduced to a straight fight between the Bronfman-led consortium and NBC (see
Liberty Leaves VUE Auction As Shortlist Is Narrowed).
The Bronfman family sold its Universal music and film businesses to Vivendi in 2000 but mounting debts have forced the French company to divest non-core businesses (see Party Is Over For Vivendi).
GE-owned NBC was seen as the favourite to win the auction for VUE but Bronfman, with the backing of investment bank Merrill Lynch and private equity firms Blackstone and Thomas H Lee Partners, is believed to have offered more money.
In an interview with the Financial Times, Bronfman said that a merger of VUE and NBC would be “exactly the wrong outcome” for shareholders. He cited NBC’s lack of experience in running studios, cable networks and theme parks as a particular cause for concern.
Vivendi has said that negotiations with both bidding parties are ongoing.
