(Bloomberg) -- An investment group that announced a surprise bid for Paramount Global, the parent of CBS and MTV, lists interests that range from banking to cryptocurrency and credit card processing.
Apex Capital Trust, which describes itself as a conglomerate of financial institutions and a financial services provider, said Wednesday it delivered the offer to National Amusements Inc., the family company that controls Paramount. The offer, which Apex valued at $43 billion, including debt, was also sent to a special committee of Paramount directors, according to Apex.
Spokespeople for Paramount and National Amusements declined to comment on the offer. Paramount shares were up about 2.8% to $11.55 as of 1:15 p.m. in New York.
Among the related entities Apex lists is its press release is Ion Digital Corp, which bills itself as the world’s premiere gold-backed digital security. Some traders expressed skepticism about the offer.
“It lacked credibility that no one knows anything prior about a buyer who is willing to pay $43 billion,” said Cabot Henderson, a merger arbitrage specialist at JonesTrading.
In a separate emailed statement, Tatiana Logan, general counsel for Apex, said the proposal is superior to the Skydance deal and is contingent on Paramount not selling off any of its subsidiaries.
“We are prepared to provide all necessary documentation for comprehensive due diligence,” she said. “Like most other trusts, Apex Capital Trust is not public facing.”
Paramount agreed earlier this month to merge with Skydance Media, the independent film and TV producer led by David Ellison, the son of Oracle Corp. founder Larry Ellison. The Ellison group is investing $8 billion. As part of the deal, National Amusements — Shari Redstone’s family company — agreed to sell its controlling interest in Paramount.
At the time, the parties agreed to a 45-day period during which Paramount and National Amusements could seek better offers. Apex said it’s prepared to pay Skydance’s $400 million breakup fee.
Apex said Wednesday it’s offering to purchase National Amusements’ voting and nonvoting shares in Paramount for $35.03 and $23.28 each, respectively. It’s also willing to buy the rest of the voting shares from outside investors at $35.03. As part of its offer, Apex said it would purchase 69% of the nonvoting Paramount stock at the $23.28 a share price its offering National Amusements.
In addition, the company is offering to assume Paramount’s approximately $15.8 billion in debt and infuse $10 billion into the company for future projects.
(Updates with Apex comment in sixth paragraph.)
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