MEXICO CITY (Reuters) - Grupo Televisa on Tuesday said it would consider its legal options after talks with U.S. firm Live Nation Entertainment failed to reach an accord over the latter’s decision to pull out of a deal with the Mexican broadcaster.
After Televisa’s announcement, its shares plummeted more than 6.7%.
Last July, Televisa TLEVISACPO.MX said it had agreed to sell its stake in Mexican entertainment firm Ocesa to Live Nation LYV.N for around $290 million as part of the U.S. company's acquisition of 51% of Ocesa.
Televisa held 40% of Ocesa and Mexican entertainment firm Corporacion Interamericana de Entretenimiento (CIE) around 11%.
However, early this month Live Nation announced it was not going ahead with the deal.
In a statement to the U.S. stock exchange, Live Nation said it was terminating the purchase agreement due to CIE’s failure to comply with certain contractual obligations.
Televisa opposed the decision and so the parties began talks under a so-called suspension agreement, which has expired with no resolution, the Mexican firm said in a statement.
“Televisa disagrees with the letter of termination and reserves its rights over the arguments previously made by Live Nation ... and will evaluate all recourses and actions available to it under existing agreements and laws,” it said.
CIE said in a statement it would also analyze its legal options.
Reporting by Noe Torres and Abraham Gonzalez; Editing by Lisa Shumaker and Andrea Ricci
Our Standards: The Thomson Reuters Trust Principles.