Canal Plus mulls Spanish move
Canal Plus CEO Bertrand Méheut is mulling the possible acquisition of a stake in Spanish pay TV operator Digital Plus, according to press reports.
Méheut told the Financial Times newspaper that he was open to buying the Spanish pay broadcaster, but said that there had been no talks with majority owner Prisa since last year, when the Spanish group rejected a joint offer from Canal Plus parent company Vivendi and Telefónica. Spanish regulators have just conditionally approved a purchase by MediasetÂs Telecinco of a 22% stake in Digital Plus.
Méheut also indicated that Canal Plus would not overpay for exclusive rights to French Ligue 1 football rights when they are renewed in 2012.
Liberum Capital placed a Âbuy recommendation on Vivendi following MéheutÂs interview. Analysts said the mention of Digtial Plus was Âsurprising but pointed out that Canal Plus may believe Âit has the upper hand in negotiations given the lack of subscriber growth in the businessÂ. The analysts also noted that Méheut was planning a launch of pay-TV services in Brazil, where Vivendi owns telco GVT.
Liberum estimated the cost of a Vivendi acquisition of Digital Plus could involve an outlay of Â1.31 billion, approximately the same price Vivendi recently refused to pay for LagardèreÂs 22% stake in Canal Plus.