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Vivendi mulls options for U.S. assets
Media conglomerate's CEO Fourtou will meet with U.S. executives this week; IPO is possible scenario.
September 11, 2002: 6:49 AM EDT

NEW YORK (CNN/Money) - Facing an enormous debt burden, the CEO of Vivendi Universal, Jean-Rene Fourtou, will meet with company executives in New York and Los Angeles this week to discuss future plans for the firm's U.S. entertainment divisions, including a possible stock offering, according to a published report Wednesday.

Friday in Los Angeles, Fourtou will meet with Barry Diller, the head of Vivendi Universal Entertainment, who has explored selling Universal's theme park business to a group of private investors, including the New York-based Blackstone Group, the New York Times reported.

Diller was recently scheduled to meet with Blackstone, which already owns a small stake in Universal's theme park business, but was told to wait until after he meets with Fourtou, the paper reported.

Other options for the U.S. entertainment assets include an initial public stock offering, selling some businesses in pieces, or retaining them, according to the Times, citing people close to the situation.

Investment bankers told the paper an initial public offering of Vivendi Universal Entertainment might fetch $9 billion to $10 billion, while a direct sale could be worth up to $15 billion.

One possible scenario has Vivendi offering a minority stake in Universal Entertainment to the public, selling another minority stake to a partner, such as John Malone's Liberty Media, while keeping a controlling 51 percent stake, the Times reported.

Vivendi could then sell its stake to a rival, possibly General Electric's NBC unit, which is the only broadcast network not affiliated with a movie studio, according to the paper.

An NBC executive recently met with Fourtou in Paris, the Times reported.

American Depository Receipts of Vivendi Universal (V: Research, Estimates) gained 24 cents Tuesday to close at $13.37.  Top of page




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