Davis
Marvin Davis and partners, in a bid for Universal, put U parent Vivendi on notice this week that they want to be taken seriously . . . or they'll walk.
Davis, the former owner of 20th Century Fox, offered last fall to buy all of Universal's entertainment assets in a deal valued at just under $20 billion.
The proposal was met with heavy skepticism on both sides of the Atlantic, but that changed as Davis brought on top-tier investment and banking partners. His appears to be the only firm bid in hand despite expressions of interest from a number of parties.
The Davis consortium, which includes Texas Pacific, Bain Capital and Carlyle Group, is turning up the heat ahead of a Vivendi Universal board meeting in Paris on Thursday, the day the conglom releases 2002 financial results.
Viacom chairman-CEO Sumner Redstone said at an investor conference Tuesday that he met last week with Vivendi topper Jean-Rene Fourtou but has declined to make an offer for U. (Redstone also said GM approached him about the automaker's taking Viacom stock in exchange for a stake in Hughes, another offer he turned down.)
As Fourtou seeks to line up other bidders, people close to Davis call Vivendi execs uncommunicative -- leading them on, shutting them off or throwing out counter options like bids for various pieces. Viv U is apparently reluctant to include Universal Music in the package.
"We want the whole thing. If they want to keep music, we're gone. Nobody just hangs around the hoop forever," one person said.
Davis would like exclusivity and a promise to keep the assets together, but might settle for a commitment to enter serious negotiations.
Parisian surprise
A person close to Vivendi in Paris evinced surprise at Davis' ultimatum, saying the conglom has been receptive and pointing out that Davis and partners have an interest in moving things along quickly. Execs at the French conglom say Fourtou considers Davis a serious bidder. If the French CEO considers the offer lowball, which seem to be the case, he certainly isn't obligated to tie himself up with Davis.
Barry Diller, head of Vivendi Universal Entertainment, is strongly opposed to a sale to Davis.
Meanwhile, Davis isn't the only one in the dark regarding Vivendi's intentions. Communication is not a strong suit at the company, which has splashed a general "no comment" atop its corporate Web site: "Following the many rumors about possible asset disposals, Vivendi Universal would like to again emphasize that no statement or comments will be made on disposals before their completion," it reads.
Despite Fourtou's impressive spurt of asset sales last year averted a liquidity crisis, Vivendi still faces a heavy debt load and key strategic choices of what it wants to look like.
Investors (and Universal staffers) hope Fourtou will clarify Vivendi's position on the studio and related assets during a conference call scheduled for Thursday.
Vivendi shares fell 5.44% Tuesday to $13.03.
Contact Jill Goldsmith at
jill.goldsmith@variety.com