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Seagram to buy Polygram?
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May 11, 1998: 5:29 p.m. ET
Distiller reportedly close to buying Philips' 75-pct. stake for $9B-$10B
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NEW YORK (CNNfn) - Philips Electronics N.V. reportedly is holding advanced discussions about the sale of its 75-percent stake in its Polygram N.V. music subsidiary with Seagram Co.
A deal - estimated at $9 billion to $10 billion in value - could come within weeks, according to published reports on Monday.
Officials from Seagram declined to comment as a matter of policy. A Polygram spokeswoman only commented in broad terms.
"We embrace any strategic option which will maximize long-term value for our shareholders as well as broaden opportunities for our management team, employees and talent," said Dawn Bridges, company spokeswoman.
Executives from Polygram and Seagram have been meeting daily for more than a week, Daily Variety reported. The negotiations come after Seagram and its Chief Executive Edgar Bronfman Jr. was believed to have ended talks with EMI Group Plc.
However the Polygram assets would be more valuable than EMI's portfolio as a result of the $1.5 billion spent to build the operations during the last seven years, the trade paper reported in its Monday edition.
With Polygram's portfolio of record labels such as Island and Motown, the combined entity would become the world's largest record company.
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Seagram
Polygram
EMI
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