Univision, which is the top Spanish-language broadcaster in America, has been hoping that a large bidding war would reward them with a premium buyout. The results so far have been really disappointing.
They had hoped for a bid that would be around $40 a share, or around $14 billion. So far the highest bid, which has been rejected, is $35.50 per share billionaire Haim Saban. Currently the company is valued at $32.80 per share, or close to $10 billion.
A group let by Grupo Televisa SA of Mexico City said through a spokesman that they were planning to make a bid. The problem is that a number of their partners Carlyle Investment Management, Kohlberg Kravis Roberts & Co. and Blackstone Management Associates V, have left because they are concerned that Televisa is going to offer a bid far more than they're willing to commit to.
The rest of the group: Venevision Investments of Caracas, Bain Capital and Microsoft (MSFT) Chairman Bill Gates’ Cascade Investments, has a problem because Televisa, Venevision and Televisa director Carlos Slim Domit are close to the allowable stake foreign ownership is allowed under U.S. law which is 20% of the company; 25% if it is a parent company of the licensees.
With these limitations it would be contingent upon Bain and Cascade to be willing to pay off the rest of the bid. It would take about $9 billion between the two of them.
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