Bertie and its advisers, Citigroup and J.P. Morgan, fielded more than a dozen offers last week, Arango reports, after which it invited back a handful of prospective buyers, each of which bid at least $1.5 billion, with UMG said to be the most aggressive, true to its M.O. These suitors are attracted to the pubbery’s consistent profitability—it throws off annual revenue in the $100 million range.
Following I.B.’s line of reasoning, Arango wrote that “Some close to the process say Bertelsmann may be inclined to sell to a private-equity group or Viacom because of the added regulatory risk that would come with selling to Warner, Universal or EMI.” He quotes a media banker as noting, "The real question is: Do the Germans have the patience for a big regulatory fracas?"
EMI is working with Kohlberg Kravis Roberts, while WMG is operating in tandem with its usual suspects, Providence Equity Partners, Bain Capital and Thomas H. Lee Partners.