George Mannes

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MGM Sees No Bargain at Vivendi

07/29/03 - 05:21 PM EDT

V MGM L GE

George Mannes

Though a handful of buyers -- including GE GE and Liberty Media L -- are still in the running for all or part of VUE, MGM's move adds to chatter that Vivendi Universal may be too optimistic in the price it seeks to get for assets such as Universal Studios, the Sci Fi Channel and its theme parks.

In a statement that, like MGM's, could be interpreted by outsiders as meaningful or just posturing, Vivendi Universal Chief Financial Officer Jacques Espinasse said last month the company could do an initial public offering of VUE's shares as an alternative to an asset sale. "We are not in a corner," Espinasse said at the time. "There is a floor under which we will not go."




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George Mannes



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