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Zee picks UBS Warburg as stake sale advisor

Zee Telefilms, one of India's largest private television broadcasters, has appointed UBS Warburg to hunt for a strategic partner to help raise its profile in international markets, a senior Zee official said on Monday.

"We have appointed UBS Warburg to be our advisor in finding a partner and would like to close the deal as soon as possible," R K Singh, Zee's chief executive officer for corporate affairs said.

Zee announced in May that it planned to sell a stake to an international media company to enable distribution of Zee programming in major overseas markets.

"This will give us more opportunities to distribute our products globally and the required impetus to increase media assets, syndication revenues, technology advantages and access to capital markets," Zee chairman Subhash Chandra said at the time.

Media reports have speculated Metro Goldwyn Mayer, Australian media tycoon Kerry Packer's Nine Network, the German media giant Bertelsmann, Liberty Media's John Malone and Charter Communication's Paul Allen might emerge as potential partners.

But Rupert Murdoch's acquisition-oriented News Corp is apparently not interested.

Peter Mukherjea, the chief executive of News Corp's Indian unit Star India, said last week Star was not interested in reestablishing financial ties with Zee.

News Corp had previously owned 50 per cent stakes in three joint ventures with Zee -- broadcaster Asia Today Ltd, cable system operator SitiCable and software producer PATCO.

Zee and Star had parted ways in 1999.

STAKE SIZE

Zee chairman Chandra had said the sale could include a portion of his 60 per cent stake and newly issued shares.

On Monday, Singh refused to give more details, saying it was up to the merchant banker to devise a proposal.

He said no company had approached Zee with a partnership proposal so far.

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