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Polygram sale may be near
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May 18, 1998: 2:49 p.m. ET
Philips, Seagram boards meet this week on bid for Philips' stake, reports say
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NEW YORK (CNNfn) - Seagram Co. likely will acquire Polygram NV, the world's largest record label, as early as Tuesday for nearly $11 billion, according to reports published Monday.
Seagram's board was expected to meet Monday to discuss the purchase of Philips Electronics NV's 75 percent stake in the Dutch music producer for $10.5 billion to $10.7 billion, the Wall Street Journal reported.
However, the deal still could fall apart due to an impasse on Polygram's movie assets, a collection purchased from Credit Lyonnais last year that includes such motion pictures as "The Graduate," the report said.
In addition, another buyout group led by former Walt Disney Co. President Michael Ovitz will make a decision Monday about a possible counteroffer, Daily Variety reported. The investors' group includes buyout firms Forstmann Little & Co. and Thomas H. Lee & Co.
The Seagram deal is structured using 80 percent cash and 20 percent stock. The proposed transaction includes similar terms for the 25 percent minority shareholders of Polygram.
Philips' board is scheduled to meet Tuesday, the Journal reported.
Neither Polygram nor Seagram officials were available for comment.
A spokesman for Thomas H. Lee declined to comment on the stories.
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Polygram
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