Univision’s Sale; Still under Bid Controversies

Univision Communications Inc.'s plan to sell the company has recently received a setback and that is no less than a shock. Kohlberg Kravis Roberts & Co. and Blackstone Group LP have dropped out of the group planning to bid for the biggest U.S. Spanish-language broadcaster.

It has been reported that they left the group due to disagreements on how much to bid.

On Tuesday, the bids offered up for Univision in its first round almost reached the company's current stock price of $ 35.40 per share, which values the company's sale at about billion. However, the stock closed on Wednesday at $ 33.84 which was $ 1.56 down from Tuesday's closing price.

A private investor group has offered about $ 10.7 billion to acquire Univision Communications Inc., while a second group which was in hopes and constant efforts to assemble a bid for the nation's largest Spanish-language broadcaster, has lost several key investors.

The private investor group that made the bid of slightly more than $ 35 per share is composed of private equity firms Madison Dearborn Partners LLC, Thomas H. Lee Partners LP, Providence Equity Partners Inc., Texas Pacific Group Inc. and media mogul Haim Saban.

On the other hand, a second investor group was working on details of a potential offer. This group consisted of two of Univision's largest shareholders and programming suppliers - Mexican media giant Grupo Televisa SA and Venezuelan broadcaster Venevision - and several private equity firms: Bain Capital Partners LLC; Blackstone Management Associates V LLC; Cascade Investment LLC; and Kohlberg Kravis Roberts & Co. LP & Co. Televisa owns about 11 percent of the company. But, as mentioned, they lost KKR and the Blackstone fund.

Univision had put itself up for sale in February and had set Tuesday as a deadline for offers.

According to Wall Street analysts, the company could sell for as much as $ 40 a share, or about $ 12.2 billion. An offer of a share would be worth about $ 10.7 billion.

However, Univision has not issued a statement about the bid as yet.

Before, the KKR and Blackstone defections, another of the Televisa group's initial investment partners, private equity firm Carlyle Investment Management LLC, had dropped out of the group.

It is reported that Carlyle left the bidding because the group's proposed offer of about $ 34 a share was too high.

Univision operates three television networks - Univision, TeleFutura and Galavision - more than two dozen television stations, a recorded music division, an Internet portal and Spanish-language radio stations.