He's branching out . . .
Len Blavatnik in £20m rescue talks for Setanta
Len Blavatnik, the Ukrainian-born oligarch, is expected to install a former BSkyB executive to play a leading role if his £20m lifeline for Setanta is accepted, telegraph.co.uk has learnt.
David Chance, the former deputy chief executive of BSkyB, will hold a key position if the lifeline by Mr Blavatnik, already a Setanta shareholder, is accepted.
He is seeking a 51pc stake in the pay-tv channel. Michael Rhodes, the former head of regulatory affairs at BSkyB, is also expected to have a role at Setanta.
Mr Blavatnik acquired a stake of about 3pc in Setanta. In 1986, he founded Access Industries, a New York-based international industrial group, of which he is Chairman and President. Access has long-term strategic holdings in Europe, North and South America.
A spokesman for Access Industries, has confirmed Mr Blavatnik’s offer. Sources also said they expected Mr Chance, who runs Top Up TV, the pay-for service on Freeview in which Mr Blavatnik has a stake, to play a key role at a new Setanta.
The spokesman said "Access Industries can confirm that this morning it submitted a proposal to the Board of Setanta to acquire a majority interest in Setanta, refinancing the Company.
“The Access proposal is subject to a number of pre-conditions being met. Access believes that this proposal would secure the future of the broadcaster for customers, football and employees."
Executives are hopeful that a package can be agreed as early as Friday. A quick settlement is crucial as the broadcaster is due to make a scheduled £30m payment to the Premier League. Failure to do so could result in administration.
The company has been preparing for administration all week, but the potential rescue package has been discussed by the company’s board and the meeting broke up amid genuine optimism that the broadcaster might be rescued.
Mr Blavatnik's petrochemicals business, Lyondell Basell, which filed for bankruptcy protection in January owing $26bn, sparked a row when it emerged that Royal Bank of Scotland had been forced to write off a £2.5bn loan to the company made by ABN Amro, the Dutch bank which was taken over by RBS.
Sources indicated that there remains significant work to be done before a deal can be closed and the rescue attempt may yet fail, but the company is more hopeful of its future than at any time in the last week.
Founders Michael O’Rourke and Leonard Ryan have been attempting to find fresh investors and have been approaching wealthy Irish investors. A plan to sell off the company’s profitable overseas divisions in order to save the UK business is another possibility.
As well as the £30m Premier League payment, Setanta has outstanding fees to the SPL and the FA.
http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/5515436/Len-Blavatnik-in-20m-rescue-talks-for-Setanta.html
Good information.Thanks for sharing.......
Posted by: Manchester United | July 10, 2009 at 12:19 AM