Can Universal hit its high price tag?

Liberty Media confirmed on Monday that was no longer interested in buying Vivendi's Hollywood properties, which include Universal Studios and the USA and Sci Fi cable TV networks.

This leaves only two serious contenders reportedly in the running - TV network NBC, and investors led by Vivendi vice chairman Edgar Bronfman.

Vivendi's board is due to meet later on Tuesday to discuss the bids, and may even pick on one party to deal with exclusively.

But the lacklustre interest in the sale has made it unlikely that the firm will achieve its $14bn (�8.9bn) price target.

Too much money

Liberty specifically cited the price tag as its reason for pulling out of the auction.

"The synergy opportunities with our other businesses are not sufficient to support the expected transaction value," Liberty president Robert Bennett said.

Now, NBC - part of the General Electric empire - is seen as the leading bidder, since analysts point to the complementary nature of the two media portfolios.

According to media reports, the firm sent Vivendi a letter on Saturday detailing a merger proposal.

But Mr Bronfman, whose family firm ran Universal until it was bought by Vivendi, has offered more immediate cash.

The disadvantage of Mr Bronfman's bid is that Vivendi would give up its entire Universal shareholding; NBC contemplates Vivendi retaining a 20-25% stake.