Vivendi: divestment of UMG proving more difficult
(CercleFinance.com) - According to Bloomberg, financial investors and institutional funds that were in talks with Vivendi appear to be less interested in the acquisition of UMG.
Several potential buyers would deem that the asking price is too high, Bloomberg says (25 billion to 30 billion euros, the article says).
Bloomberg says that the divestment process is still ongoing and that Vivendi would now like to negotiate with an industrial player (including Tencent). Oddo has always favoured a potential agreement with an industrial partner - particularly Apple or Tencent.
Oddo says in its daily equity review that the company has repeatedly set a reserve price (not communicated), which means that if this is not reached, the group could abandon the sale.
The broker believes that the sale of a minority stake is still possible. It values UMG at around 23 billion euros (against a range of 20 billion to 40 billion euros according to the consensus).
It would be more appropriate to wait, increase the value of UMG through an association with the minority buyer and sell when Bolloré has increased its stake in Vivendi, so it seems possible that Vivendi is looking for a much higher valuation for UMG. over the LT, Oddo explains.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Several potential buyers would deem that the asking price is too high, Bloomberg says (25 billion to 30 billion euros, the article says).
Bloomberg says that the divestment process is still ongoing and that Vivendi would now like to negotiate with an industrial player (including Tencent). Oddo has always favoured a potential agreement with an industrial partner - particularly Apple or Tencent.
Oddo says in its daily equity review that the company has repeatedly set a reserve price (not communicated), which means that if this is not reached, the group could abandon the sale.
The broker believes that the sale of a minority stake is still possible. It values UMG at around 23 billion euros (against a range of 20 billion to 40 billion euros according to the consensus).
It would be more appropriate to wait, increase the value of UMG through an association with the minority buyer and sell when Bolloré has increased its stake in Vivendi, so it seems possible that Vivendi is looking for a much higher valuation for UMG. over the LT, Oddo explains.
Copyright (c) 2019 CercleFinance.com. All rights reserved.