Univision Approves $12.3 B Sale

Elena
27 Jun, 2006
New York City

The figure agreed upon late Monday equals $36.25 a share, which a 13% premium to Univision''s closing stock price on Monday. The group of investors will also assume about $1.4 billion in debt. Last week the consortium bid $35.50 a share, or just under $11 billion total, but the broadcaster rejected the group''s initial bid as too low.

[R]8:00AM Univision Communications’s board approved a sale of $12.3 billion.[/R]
Univision Communications Inc. agreed to sell the nation''s largest Spanish-language broadcaster for $12.3 billion in cash to a consortium of investors. The figure agreed upon late Monday equals $36.25 a share, which a 13% premium to Univision''s closing stock price on Monday. The group of investors will also assume about $1.4 billion in debt. The consortium, led by private equity firms Texas Pacific Group Inc. and Thomas H. Lee Partners, also includes Madison Dearborn Partners LLC, Providence Equity Partners Inc., and media mogul Haim Saban. The acquiring group said in a joint statement that Univision ‘is an outstanding media brand with exceptional positions in the fastest-growing markets in the country, world-class assets, strong management, popular programming and unmatched ratings.’ Last week the consortium bid $35.50 a share, or just under $11 billion total, but the broadcaster rejected the group''s initial bid as too low. Each of the private equity groups is expected to invest around $1 billion initially and Saban somewhat less, the person said. The deal, which is subject to the approval of shareholders and regulators, is expected to close in the fourth quarter of 2006 or first quarter of 2007. Univision shares fell 2.79%, to close Monday at $32.03 on the Nymex.


[R]7:15 AM Asian markets finished mixed, Japan gains slightly.[/R]
Asian markets ended mixed Tuesday. The Nikkei 225 Index rose 0.13% to 15171.81, with steel shares continuing Monday''s rise on news of the likely merger between Arcelor and Mittal Steel. The merger is expected to accelerate the continuing wave of consolidation in the global steel industry. Japan steelmaker Nippon Steel was among the gainers, adding 1.92%. JFE Holdings also rose 2.84% and Sumitomo Metal Mining gained 3.23%. Hong Kong stocks closed slightly down as investors waited on the Fed''s decision. The Hang Seng Index shed 0.19% to 15774.70. Hong Kong follows U.S. monetary policy because its currency is pegged to the U.S. dollar. South Korean and Taiwan shares led regional gainers, as both indexes advanced 0.8%. The Korea Composite Stock Price Index, or Kospi, advanced to 1247.54, extending the previous session''s gain. Taiwan stocks also gained, ending up at 6572.39, as legislators failed to approve an opposition-led effort to hold a referendum to oust the president. China''s shares ended higher Tuesday. The Shanghai Composite Index advanced 0.4% to 1639.55. The Shenzhen Composite Index gained 0.2% to 424.66. Australia''s S&P/ASX advanced 0.7% at 5000.50, while New Zealand''s NZX 50 Index gained 0.7% to 3613.417.


[R]6:30AM Europe erases early gains.[/R]
European markets rose slightly in mid-morning trade. London’s FTSE 100 gained 0.1 %to 5,685.3, while Frankfurt’s Xetra Dax was unchanged at 5,514.46 and the CAC 40 in Paris climbed 0.1% to 4,806.5. On the corporate front, Banca Monte dei Paschi di Siena advanced 1.5% after it announced it was looking to integrate with Finsoe, the holding company which owns a controlling stake in Italian insurer Unipol. Anglo Irish Bank climbed 1.3% as recent losses presented investors with a good buying opportunity. Oil stocks added some weight to European gains. Overnight, US crude advanced to $72 a barrel for the first time in two weeks on fears that increasing demand for gasoline would sap US stockpiles. France’s Total advanced 0.9%, while Norway’s Statoil added 2.1%. France’s Suez climbed 1.2% after the utility was upgraded by UBS from ‘neutral’ to ‘buy’.

Crude oil advanced 51 cents at $72.31 a barrel by 0930 GMT, reaching a two-week high after rising 93 cents on Monday. London Brent crude advanced 52 cents to $71.24. Gold in London traded at $587.70 per troy ounce, up from $579.20 late Monday. The dollar gained against the European currency. The euro traded at $1.2578, down from $1.2580 late Monday in New York. The greenback bought 116.36 Japanese yen, up from 116.28. The British pound traded at $1.8223, down from $1.8234.