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Private buyer for Tropicana?
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June 17, 1998: 6:37 a.m. ET
With IPO market dry, Seagram shops around juice unit to private buyers
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NEW YORK (CNNfn) - Seagram Co. is reportedly shopping around its cash-churning Tropicana juice division among private buyers amid a soft market for initial public offerings.
But the Wall Street Journal reports the Montreal-based beverage and media company wouldn't harvest as much money for Tropicana in a private sale -- perhaps less than $3 billion.
Seagram said last month it would sell 95 percent of the juice unit, hoping to fetch more than $3.5 billion. An IPO that size would be among the richest of all time.
That windfall would help pay for its planned purchase of music powerhouse Polygram NV, which Seagram said it last month it will buy for $10.6 billion as part of its transformation into primarily an entertainment giant.
Goldman Sachs & Co. is advising Seagram on any sale.
Shares of Seagram (VO) closed Tuesday at 40-7/8, up 3/8, in New York Stock Exchange trading.
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Seagram
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