I think with the veto power of Univision's U-shares over any M&A, and Searchlight's ownership of Univision. I think they would be the preferred buyer. I am unclear how the u-shares would impact the auction dynamics however. Could they force a lower sales price? I don't know.
That’s a very good point — and yes, Univision’s veto power could discourage other bidders if it became known they were pursuing EVC (effectively setting a price ceiling). That said, the combination of the board’s fiduciary duty (especially given their meaningful ownership) and the legal risks of pushing through a lowball offer should help ensure shareholders receive a fair deal. Additionally, since the U-shares carry no voting rights, any transaction would still require a majority vote from the remaining shareholders to be approved.
Great Write-Up.
I think with the veto power of Univision's U-shares over any M&A, and Searchlight's ownership of Univision. I think they would be the preferred buyer. I am unclear how the u-shares would impact the auction dynamics however. Could they force a lower sales price? I don't know.
That’s a very good point — and yes, Univision’s veto power could discourage other bidders if it became known they were pursuing EVC (effectively setting a price ceiling). That said, the combination of the board’s fiduciary duty (especially given their meaningful ownership) and the legal risks of pushing through a lowball offer should help ensure shareholders receive a fair deal. Additionally, since the U-shares carry no voting rights, any transaction would still require a majority vote from the remaining shareholders to be approved.