Vivendi will try to get the maximum of GE

It is rare that a French operator holds the keys of an American mégafusion. In fact, the Comcast-NBC merger, negotiations for several weeks, remains today suspended the green light from Vivendi, which has until December 10 to notify to General Electric (GE) the sale of its 20 in the U.S. television network. Based on enhancement of NBC Universal students billion raised so far in the GE-Comcast AIP, the value of the 20 of Vivendi should be around 6 billion (4 billion euros), against a book value of 4.3 billion euros ($6.3 billion) in its 2008 budget. But the recovery remains subject to a process of complex security set by the agreements concluded between GE and Vivendi Universal in May 2004. "Vivendi will try to get the maximum of GE." "It's good war," said analyst, convinced that the opening of negotiations between GE and Comcast strengthens the hand of the French group. According to the schema in bargaining, whose completion was originally expected yesterday, the number one US cable Comcast should take control of NBC Universal to 51, alongside GE (at 49), in exchange for the contribution of its networks cabled to the new set and the payment of a balance of 4 to 6 billion in cash, on the basis of a valuation of the activities of NBC to $ 30 billion. But the part in cash can vary depending on the financial performance of NBC Universal from here to the closure of the transaction.

Complex agreements

According to some analysts, the redemption of the Brazilian operator Govt. by Vivendi for EUR 2.8 billion now strengthens the hypothesis of a rapid transfer of its 20 in NBC. But the French group nuance this assumption by noting that the Brazilian acquisition will be entirely financed by "available for $ 5 billion credit lines. For good show that no agreement has been concluded with GE hitherto, Vivendi said also that the possible sale of its 20 in NBC remained subject to a complex process set by the agreements of May 2004, refurbished in December 2006.

Under the terms of the agreement, "Vivendi may notify GE its intention to transfer its securities market to the tune of a maximum amount of 4 billion dollars between November 15 and December 10 of each year from 2009 and 2016", this process can possibly lead to a public offer for sale (OPV) of a part of the 20 in NBC, "the year following that of notification". The initial agreement said also that GE has of a right of first refusal for all the titles that Vivendi wants to give the market, but without specifying the price. In addition, if Vivendi exercises its option to sell to GE, it is planned that "these titles will be valued at the value high between their market value of the exercise of the option and the value at the NBC Universal intervenueen May 2004 operation (i.e. $ 8.3 billion), indexed to the price in the consommationaux United States from May 2009".

In view of these complex agreements which provide for the surrender of the 20 of Vivendi in NBC in a placing on the market, the GE-Comcast agreement, including the conclusion seemed imminent, may be significantly delayed. Will in all cases, despite his scheduled release from NBC capital, Vivendi Universal remain not less a major player in the US market with the number one global music publishing Universal Music and its subsidiary of Activision Blizzard video games.