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CORRECTED-UPDATE 1-Anschutz says terminates AEG sale, president departs
March 14, 2013 / 6:30 PM / in 5 years

CORRECTED-UPDATE 1-Anschutz says terminates AEG sale, president departs

(Corrects 9th paragraph to describe Los Angeles as 2nd-largest city, not largest)

* Had sought at least $8 billion for business

* Will forge ahead with L.A. stadium plan

By Ronald Grover and Soyoung Kim

March 14 (Reuters) - U.S. billionaire Phil Anschutz has decided to retain ownership in Anschutz Entertainment Group and will terminate the sale process for the sports and entertainment empire, the company said on Thursday.

As part of the decision, Dan Beckerman will become president and chief executive officer of AEG, replacing Tim Leiweke, who has been at the helm since 1996 and is leaving the company.

AEG put the company up for sale on Sept. 19. It had been seeking at least $8 billion for the business, whose assets include 120-owned or operated arenas around the world, the Los Angeles Kings professional hockey team, a stake in the Los Angeles Lakers basketball team, and a concert business.

Colony Capital LLC, Guggenheim Partners LLC and Los Angeles biotech billionaire Patrick Soon-Shiong made second-round bids in February for the company, people familiar with the deal process told Reuters.

The bidders submitted non-binding offers of under $7 billion for AEG’s assets, those people said. Colony Capital bid along with Qatar’s sovereign wealth fund.

The bidders and AEG were more than $1 billion apart on price at that time, according to one of the people.

“From the beginning of the sales process, we have made it clear to our employees and partners throughout the world that unless the right buyer came forward with a transaction on acceptable terms were would not sell the company,” Anschutz, AEG’s chairman and chief executive, said in a statement.

Anschutz’s adviser, Blackstone Group, was looking for a price in the high single-digit to low double-digit billions, the people said.

Leiweke was the public face of the company’s $1.2 billion plan in downtown Los Angeles to lure a National Football League franchise to the nation’s second-most populous city after nearly two decades without a professional American football team.

Beckerman said the company intended to go forward with the plan to build the stadium, to be named Farmers Field, and to bring a football team to Los Angeles. The company would also continue plans to build an arena in Las Vegas with casino operator MGM Resorts International.

“We appreciate the role Tim has played in the development of AEG, and thank him for the many contributions he has made to the company,” Anschutz said in a statement. “We wish him well in his new endeavors.” (Reporting by Soyoung Kim in New York; Editing by Gerald E. McCormick and Leslie Gevirtz)

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