Bronfman wants back Vivendi asset
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Bronfman is getting a group of investors together to make a bid for Vivendi's entertainment assets.
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Paris, France (CNN) -- Vivendi Universal said Wednesday that Vice-Chairman Edgar Bronfman Jr. was interested in buying back the U.S. entertainment assets his family sold to the world's second-largest media company three years ago.
In a brief statement, Vivendi said it was "in open discussions" for the disposal of assets and that Bronfman had informed the company of his intention to lead a consortium of potential buyers.
Jean-Rene Fourtou, chief executive of Vivendi Universal (PEX), has made it clear he plans to sell the assets -- which include the Universal Studios, Universal Music and the USA and Sci-Fi cable channels -- to slash its debt mountain.
The company's exit from the U.S. entertainment business marks a dramatic reversal of the strategy pursued by former chief Jean-Marie Messier, who transformed the water company into an entertainment giant to rival AOL Time Warner (AOL), the parent of CNN.
Messier paid $34 billion for the assets in December 2000 but now the company stands to raise as much as $15 billion from the sale, according to analysts' estimates.
Vivendi has held talks with both oil billionaire Marvin Davis and U.S. media giant Viacom over the U.S. assets. John Malone, chairman of Liberty Media (L), has also expressed an interest in the business.
Bronfman and his father, Edgar Bronfman Sr., have agreed not to participate in Vivendi board and committee meetings for the time being, Vivendi said.
In an interview with the Wall Street Journal, Edgar Bronfman Jr. said that he was assembling a group of investors to make an offer for Vivendi's U.S. entertainment businesses.
Among his backers was New York cable operator Cablevision Systems, which would contribute its entertainment cable networks to a new company to be formed if Bronfman's bid succeeded.
Bronfman declined to disclose what price his group was considering offering for the assets, though he said his family would contribute cash to the bid. Wachovia Securities had been lined up to put together debt financing for the bid, while Merrill Lynch was providing financial advice and debt financing.
