UPDATE 1-Second round set for French soccer TV rights
(Adds stock reaction, analysts comments, details)
PARIS, Feb 1 (Reuters) - France's professional soccer league (LFP) has extended the bidding process for rights to broadcast top-flight soccer matches over the next four seasons.
The surprise news was seen on Friday as a setback for the money-hungry League which did not get high enough bids.
The terms of the second round of bidding were still unclear but pay-TV group Canal Plus (VIV.PA), who vowed not to overpay, emerged as the winner of the first phase, analysts said.
Shares in media group Vivendi (VIV.PA), the parent of Canal Plus, gained more than 4 percent on Friday.
In a statement on Thursday night, the league announced no packages had been awarded despite the fact that nine contenders submitted 31 financial offers.
It gave no reasons for this but analysts said this meant none of the packages up for grabs in the complex auction found buyers at the minimum price sought by the league.
Another unknown is whether the second round will be an open bidding process or a direct negotiation between the league and the key bidders, analysts said.
The two main contenders in the auction - Canal Plus and France Telecom's mobile unit Orange (FTE.PA) - were now in a stronger bargaining position and a bidding war between the two groups in the second round was unlikely, several analysts said.
"Overall, this so far validates our scenario of stability in prices and sensible bidding," Exane BNP Paribas analysts said in a note.
"This should be taken positively for Canal as investors had been anticipating a worse outcome...This is also reassuring on France Telecom," they said.
VIVENDI SHARES GAIN
By 1150 GMT, Vivendi shares were up 4.36 percent at 28.02 euros and France Telecom shares rose 1.82 percent to 24.06 euros.
"Canal Plus is in a strong bargaining position and Orange has not proven to be too aggressive," Societe Generale analysts said in a note. Continued...
