Paris, June 18: Vivendi said on Sunday thatmerger talks with its pay-TV unit Canal Plus and Canada's Seagram were in their final stage and said a deal could be announced as early as Tuesday. The communications, media and utility conglomerate said in a statement that the three companies would hold individual board meetings on Monday but made clear that none of them would make any comment before a possible news conference on Tuesday."The negotiations initiated by Vivendi with Seagram and Canal Plus, which could result in an alliance of the three firms, have now entered their final stage," the statement said. "In the event of a conclusion to these discussions, a news conference, in the presence of (Seagram Chief executive) Edgar Bronfman could take place on Tuesday, June 20 at 1130 (local time, in Paris). Until then, the three groups will refuse any comment," it said.
The three groups are expected to announce their merger into a global media giant called Vivendi Universal with turnover of some $65 billion and a market capitalisation of $100 billion.
The operation is expected to be an all-share offer by Vivendi, worth around $33 billion, for Seagram stock. To avoid being saddled with Seagram's $7 billion of debt, analysts expect the deal will involve Vivendi selling off Seagram's drinks business, estimated to be worth $6-7 billion.
Sunday's statement confirmed newspaper reports that Vivendi directors will hold a preliminary working meeting on Sunday evening ahead of a board meeting on Monday to finalise its marriage with the Canadian drinks and entertainment giant. It said pay-television group Canal Plus, 49-per cent owned by Vivendi, would hold its own board meeting on Monday morning, something a Canal Plus spokesman also confirmed to Reuters. Seagram's board of directors would also meet on both Sunday and Monday afternoon in the United States, having already held a preliminary meeting on Saturday, Vivendi also said.
French weekly Le Journal du Dimanche said on Sunday that Vivendi Universal, expected to be based in Paris, was set to be up and running in October or November, noting Vivendi would be keen to move swiftly to reassure investors over its strategy. Daily Le Figaro said on Saturday one issue that might stall the conclusion of the merger talks could be bartering over how big a slice each company would get in the new media powerhouse. Le Journal de Dimanche said current Vivendi shareholders would have 59 per cent of the new group, Canal Plus shareholders would get 12 per cent, and Seagram shareholders 29 per cent.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.