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07-22-2003, 09:47 AM
MGM STAYS IN RUNNING AT VIVENDI
By TIM ARANGO
July 22, 2003 -- MGM was apparently satisfied with the amount of new information it received from Vivendi and didn't follow through on a threat to back out of the auction for the French giant's U.S. entertainment assets, sources said.
Last week MGM said it would raise its bid for the assets - which include Universal Studios and cable networks USA, Sci-Fi Channel - to $11.5 billion if it got a more in-depth look at the company's books.
If it didn't get that information by July 21, MGM said, it would back out of the bidding.
Later, Vivendi rejected the new bid because it was too low, but welcomed MGM to stay in the process.
A source familiar with the deal said yesterday that MGM was not given all the new information it was seeking - nor did it get additional data not available to the other four bidding parties.
"MGM is very, very engaged in the deal," said a source close to the deal.
This source added that Vivendi "is not resisting requests for information from anyone."
MGM and Vivendi declined comment.
MGM's original $11.2 billion bid was said to have offered Vivendi the most up-front cash.
The other bidders for the entertainment units are John Malone's Liberty Media, Viacom, General Electric, and a private equity group headed by Edgar Bronfman Jr.
It was previously believed that Vivendi had set a bidding floor of $11.5 billion, but that is not the case, sources said - although the company now expects to get more than that.
As Vivendi weighs the various bids, the company is also considering an initial public offering of VUE in case it does not get the price it wants.
Another option, which some say is becoming increasingly likely, is to hold onto the assets.
Jean-Rene Fourtou, Vivendi's chief executive officer, was in New York over the weekend and met with representatives from each of the bidding parties.
He was seen at the Four Seasons restaurant eating with Bronfman, as well as Cablevision's Chuck and Jimmy Dolan. Cablevision has contributed its cable networks - including American Movie Classics and WE: Women's Entertainment - to Bronfman's group.
Fourtou returned to Paris last night.
Vivendi is currently in the second round of bidding, and could eliminate two or three of the groups in the next couple of weeks.
A final decision is expected by September.
By TIM ARANGO
July 22, 2003 -- MGM was apparently satisfied with the amount of new information it received from Vivendi and didn't follow through on a threat to back out of the auction for the French giant's U.S. entertainment assets, sources said.
Last week MGM said it would raise its bid for the assets - which include Universal Studios and cable networks USA, Sci-Fi Channel - to $11.5 billion if it got a more in-depth look at the company's books.
If it didn't get that information by July 21, MGM said, it would back out of the bidding.
Later, Vivendi rejected the new bid because it was too low, but welcomed MGM to stay in the process.
A source familiar with the deal said yesterday that MGM was not given all the new information it was seeking - nor did it get additional data not available to the other four bidding parties.
"MGM is very, very engaged in the deal," said a source close to the deal.
This source added that Vivendi "is not resisting requests for information from anyone."
MGM and Vivendi declined comment.
MGM's original $11.2 billion bid was said to have offered Vivendi the most up-front cash.
The other bidders for the entertainment units are John Malone's Liberty Media, Viacom, General Electric, and a private equity group headed by Edgar Bronfman Jr.
It was previously believed that Vivendi had set a bidding floor of $11.5 billion, but that is not the case, sources said - although the company now expects to get more than that.
As Vivendi weighs the various bids, the company is also considering an initial public offering of VUE in case it does not get the price it wants.
Another option, which some say is becoming increasingly likely, is to hold onto the assets.
Jean-Rene Fourtou, Vivendi's chief executive officer, was in New York over the weekend and met with representatives from each of the bidding parties.
He was seen at the Four Seasons restaurant eating with Bronfman, as well as Cablevision's Chuck and Jimmy Dolan. Cablevision has contributed its cable networks - including American Movie Classics and WE: Women's Entertainment - to Bronfman's group.
Fourtou returned to Paris last night.
Vivendi is currently in the second round of bidding, and could eliminate two or three of the groups in the next couple of weeks.
A final decision is expected by September.