NEW YORK (Reuters) - Telemundo, the No. 2 U.S. Spanish-language broadcaster, said on Monday Mexican broadcaster Televisa is anti-competitive and it would be better if the company did not increase its stake in rival Univision, which is up for sale.
"Televisa is very anti-competitive in Mexico, yet they want to be more open in the United States," Don Browne, president of Telemundo Group Inc. TLMD.O, said in an interview. "I think it's healthier if they don't (gain control)."
"We've tried in very modest ways to have distribution in Mexico, but we've been frozen out," Browne said at the Reuters Latin America Investment Summit. "I think people should keep their eyes wide open."
Univision Communications Inc. UVN.N, the No. 1 Spanish-language broadcaster, was put up for sale last month and could fetch more than $10 billion, bankers have said. Various private equity groups are exploring an offer for Univision, sources familiar with the matter have said, and the buyout firms are courting Televisa, they added.
Although U.S. foreign ownership rules would prevent Televisa (TV.N: Quote, Profile, Research, Stock Buzz)TLEVISACPO.MX from controlling a U.S. company, the Mexican broadcaster is believed to be well positioned to boost its stake in Univision.
But Browne said the proposed sale confirms -- according to the value placed on Univision -- how smart the decision by NBC and its parent, General Electric Co. (GE.N: Quote, Profile, Research, Stock Buzz), to buy Telemundo in April 2002 was.
"The fact is, when GE and NBC invested in Telemundo, I think a huge sea change occurred in the perception of Spanish- language television in this country. It really confirms the wisdom of the investment," he added.
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