Business News

Posted: Wed., Jan. 14, 1998, 11:00pm PT

Univision chair sells stock pile

Selling vast block at near-high price

NEW YORK -- Jerrold Perenchio, chairman and controlling shareholder of the dominant Spanish-lingo broadcaster Univision Communications Inc., filed documents with the SEC Wednesday to raise as much as $750 million from the sale of 20.4 million shares he owns in the company in a public offering.

The sale almost halves his stake in Univision, but because he owns supervoting shares, he will easily retain control. The sale will reduce his ownership of total stock from 40% to 26.7%, but his voting power will only fall from 92% to 78.5%.

Perenchio is selling when the stock is trading near its high for the past year, during which it has risen from $15 to just below $40. It closed Wednesday down $1.25 to $37.37.

Perenchio's sale is well-timed also because Univision's main competitor, Telemundo Group, agreed late last year to be acquired by a consortium of companies including Sony Pictures Entertainment and Tele-Communications Inc. affiliate Liberty Media. That deal is sure to make Telemundo a tougher competitor to Univision.

The sale is one of the biggest stock offerings ever done in broadcasting, analysts said. But Univision won't get any benefit, as Perenchio is getting all the money.

Contact the Variety newsroom at news@variety.com

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