UPDATE: Morgan Stanley Reiterates On Grupo Televisa SAB (ADR) Following Sale Agreement

In a report published Thursday, Morgan Stanley analyst Michel Morin reiterated an Overweight rating on Grupo Televisa SAB (ADR) (NYSE: TV), but removed the $42.00 price target.

In the report, Morgan Stanley noted, “Since its inception in 2012, the 50-50% JV included a ‘Texas shoot-out' conflict resolution mechanism, which begins when one party informs the other of their intention to sell their stake at a specific price. This offer must then be accepted; otherwise the party that declines the offer is forced to sell its stake at that same price. In this case, it would appear that Televisa initiated the shoot-out with the $717mn bid and that Salinas agreed to buy out TV's 50% stake at that price. If the deal closes,TV would take a $320mn charge,as the company had previously written down a portion of its investment, which totaled approximately $1.7bn in the three years since 2011.”

Grupo Televisa SAB closed on Wednesday at $36.58.