Bertelsmann, the media group behind the Da Vinci Code and Pop Idol, could learn this week whether it must undergo a flotation as part of an agreement with a minority shareholder.
A spokesperson for Bertelsmann declined to comment yesterday on reports that the group is preparing to sell its music-publishing arm, which owns the rights to songs by acts such as Coldplay and Christina Aguilera, and could fetch up to $1.7bn (£910m).
GBL's stake has been valued between €3.5bn (£2.4bn) and €5bn. Bertelsmann could raise the funds through the debt market, but the group is wary of constraining growth by building up an onerous debt.The family-controlled business is preparing for an initial public offering under the terms of a deal with Groupe Bruxelles Lambert, the Belgian holding company, which owns 25% of the group. From May 23, GBL can demand a listing of its stake and has already told Bertelsmann that it is likely to request an IPO.
Bertelsmann has stated that it will be ready for a flotation but its controlling shareholder, the Mohn family, is known to be uncomfortable with a listing. The group has appointed Boston Consulting to conduct a strategic review of its businesses amid speculation that it will use the proceeds from disposals to buy out GBL. Bertelsmann has the right to make a buyout offer if GBL demands an IPO.
Bertelsmann comprises six units: RTL Group, the pan-European broadcaster and owner of Five; Random House, publisher of the Da Vinci Code; Gruner + Jahr, Europe's largest magazine publisher; a music-publishing business and a 50% stake in Sony BMG, the world's second-largest record group; Direct Group, a book and music club business; and Arvato, a services company.
Source: http://business.guardian.co.uk
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