Buyout Troupe Stage Bids For Cirque Du Soleil

Some of the UK's biggest buyout funds are plotting to take control of Cirque du Soleil, the live entertainment company which is one of Canada's most prominent global exports.

Sky News has learnt that BC Partners, CVC Capital Partners and Permira Advisers are among a troupe of financial investors which have tabled indicative offers for the Montreal-based business.

The auction of a stake in La Cirque du Soleil, which staged some of the world's most spectacular live shows in the years after its launch in the 1980s but has recently fallen on tougher financial times, is expected to take place this year.

Set up by street performers in Quebec in 1984, Cirque du Soleil describes itself as offering "a dramatic mix of circus art and street entertainment".

Previous reports suggested that Guy Laliberte, the company's founder and controlling shareholder, was hoping to sell between 20% and 30% of it to a new investor who could help it to enter markets such as China and India.

However, sources close to the process say that financial information disclosed to potential buyers suggests that Mr Laliberte is now open to the possibility of offloading a majority stake in Cirque du Soleil.

Millions of people have seen the company's range of hit shows in London, which have been staged at the Royal Albert Hall for more than a decade, and other cities including Las Vegas.

Notable for its daring acrobatics and flamboyant costumes, Cirque du Soleil was valued at $2.7bn when Mr Laliberte sold a 20% stake to Istithmar World, the investment arm of Dubai World, and Nakheel, a Dubai-based real estate developer, in 2008.

However, after Dubai was forced into a sovereign debt restructuring, Mr Laliberte bought back part of the stake he had sold in a transaction valuing Cirque du Soleil at just $2.2bn.

Analysts and company executives have reportedly said that the company expanded too quickly, spending over-zealously on new performers, executives and shows in a way which diluted the brand's international distinctiveness.

Private equity groups are not the only potential acquirers of the entertainment group.

Recent reports suggested that Live Nation Entertainment (NYSE: LYV - news) , IMG and AEG Live, were expected to submit offers.

Goldman Sachs (NYSE: GS-PB - news) is handling the auction for Cirque du Soleil, which could not be reached for comment.

BC, CVC (Taiwan OTC: 4744.TWO - news) and Permira all declined to comment.