Vivendi to open talks with "selected bidders"

[Digger]

It's not much, but there will surely be updates soon as news leaks out.
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Vivendi to open asset talks with selected bidders

PARIS, July 1 (Reuters) - Vivendi Universal said on Tuesday it would open in-depth talks with "selected bidders" for its U.S. entertainment assets after a first round of bids yielded "very significant competition."

In a statement after Paris board talks, the French-American group Vivendi did not identify the bidders who would go through to the second round of an auction widely expected to raise at least $10 billion.

Vivendi also said it would pursue all possible legal actions in France and the United States to block a U.S. tribunal's decision to award its former CEO Jean-Marie Messier, who was sacked a year ago, more than 20 million euros in severance pay.

Vivendi said that on June 30 it was on target for its cash and debt levels and that the situation at its main business units -- particularly VUE (the U.S. unit comprising cinema, TV and theme park properties that are being sold) and French telecoms group Cegetel -- was "highly satisfactory."

Vivendi issued the statement after its board reviewed six offers for all or part of its U.S. entertainment empire, according to sources close to the auction

Vivendi is selling its Universal assets to cut huge debts piled up during Messier's reign as he transformed a sleepy water utility into the world's second biggest media group.

[Digger]

Davis out of Vivendi entertainment race - sources

Tue July 1, 2003 01:17 PM ET
PARIS, July 1 (Reuters) - Vivendi Universal EAUG.PA has dropped oilman Marvin Davis from the list of bidders for its U.S. entertainment assets and will open talks with a shortlist of five contenders, a source close to the auction said.

Vivendi, which earlier said it would open in-depth talks with selected bidders, will now pursue discussions with a remaining shortlist of five contenders, the source said.

A second source, also asking not to be identified, confirmed Davis was out of the race in the auction for Vivendi's U.S. cinema, TV and theme park assets which is widely expected to raise at least $10 billion for the indebted media group.

"Davis is out unless they can come back with a substantially better offer," this source said. The source said the sticking point appeared to be Universal Music Group, a separate division which Davis wants to buy and Vivendi prefers to keep.

Edited to say: And then there were 5

[Dominar of Action]

Gee, you'd think Davis would take the hint. They don't like you, buddy. :)

[Digger]

Gee, you'd think Davis would take the hint. They don't like you, buddy.

I seem to remembering reading a story a long time ago that said there were some personal issues between Davis and someone at Vivendi, but if he was making a good offer it wouldn't matter. Most of the articles I have seen recently have been pretty dismissive of his chances anyway so this did not come as a big surprise. What does come as a bit of a surprise is that some people seem to consider NBC as one of the front-runners (or so someone said on CNBC last night, and you can take that with a pound of salt) even though they are not offering cash, which is what Vivendi wants most. Personally I think Liberty Media is the front-runner, with MGM as the second most likely. Of course Viacom could turn out to be the wild card in the process, strengthening one of the bids with an infusion of cash to push it over the top. Even if we shoud hear that they are "out" of the bidding they might still be waiting on the sidelines for someone to come to them for help.

[JA_Shipper]

Can't say I'm surprised Davis is out, either. If I remember correctly (and wouldn't be surprised if I don't) didn't he offer something like 20 billion a while ago, but then brought it *down* to about 15?

Who knows. I just want the thing over and done with one way or the other so I know if Viacom will own Sci Fi (possibly buying it from whoever ultimately buys the lot) or if they will start their own channel or what.

Yup, never been the patient type. LOL.

Suse

[vhsiv]

You might as well call it 4 - there doesn't seem to be that much confidence out there for Bronfman, either.

I didn't expect Davis to be the first one to drop out...

[DZ_Crasher]

Anyone know how long before Vivendi has to make a descion? Or can this go on forever?

[Digger]

Vivendi has set a deadline for themselves of no later than the end of September.

[Dominar of Action]

Yes, Digger, I remember reading those reports from some time back about how the Vivendi management was mocking Davis. And while the directors would be obligated to accept his offer if it was clearly the best, all things being equal he didn't stand a chance. And in this contest of apples vs. oranges. vs. canteloupes, it's too easy to come up with reasons to reject his bid that wouldn't get them into hot water with their shareholders.

[akimbo]

My local paper said
"MGM sold it 20% stake in AMC, IFC, WE to Cablevision for $500 million. MGM,controlled by Kirk Kerkorian, might use this to help finance it bid for Vivendi film studio, cable networks and theme park."

Oooh its getting serious. Woo Hoo!