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Televisa Refutes Reports That Univision Bid Is in Works

Mar 13, 2006  •  Post A Comment

Mexican media company Grupo Televisa said Monday that it is still considering whether to prepare a bid for Spanish-language broadcaster Univision Communications, refuting press reports that Televisa had already teamed with a group of private-equity firms to make an offer.

The Mexico City-based company described itself as being “in the early stages of analyzing different alternatives to determine what, if any, course of action makes sense for us. At this point, we are not participating in the process, and we have had no discussions or negotiations with Univision. In addition, we have no agreements with any third party to form a group or consortium.”

Televisa issued the statement after shares in Univision jumped late last week on speculation that Televisa, along with a group of private-equity firms including Providence Equity Partners, had joined together to bid for Univision, which announced several weeks ago it was considering a variety of strategic alternatives, including a sale.

Many analysts have long believed that Televisa is a likely bidder for Univision. Televisa owns an 11 percent stake in Univision and is its main supplier of video content, including highly popular telenovelas. However, because of federal rules limiting the foreign ownership of television stations in the United States, Televisa would need a U.S. partner to go after Univision.