Liberty Media has revealed plans to increase its shareholding in UnitedGlobalCom, the cable group, and remains in the running for the US entertainment assets of Vivendi.
UGC’s founders, including chairman Gene Schneider, have agreed to convert their class B shares for Liberty stock. This takes Liberty’s holding in UGC to 75% and voting rights to 96%.
The deal reaffirms Liberty’s commitment to United Pan-Europe Communications, a UGC subsidiary. The Dutch based cable operator has more than 7 million subscribers across Europe but after financial difficulties is in the process of completing a debt-for-equity swap that will leave UGC with a 65.5% stake (see UPC Wins Backing For Refinancing Plan).
Despite this renewed interest in the European cable market, Liberty Media remains on the shortlist of bidders for Vivendi Universal Entertainment (VUE). The assortment of film studios, theme parks and cable TV channels is on the market for $14 billion and Liberty is competing with General Electric, Viacom and a consortium led by Vivendi vice-chairman Edgar Bronfman (see Comcast Not In The Running For VUE).
