THREE WAY MERGER CREATES VIVENDI UNIVERSAL
By Adnews Staff
Montreal-based Seagram Company Ltd., which operates globally in the fields of music, film, recreation and spirits and wine, has struck a three-way merger with Vivendi and Canal Plus, both based in Paris. The all-stock deal, valued at US$34 billion, will result in the creation of a new company called Vivendi Universal, to be based in Paris with a corporate office in New York. Vivendi Universal will combine Vivendi's telecommunication assets, including high-speed wireless transmission capabilities, fixed and wireless communication networks, Internet access service providers and cable and satellite transmission networks, with Universal's production and distribution capabilities and Canal Plus' film, broadcast and subscription television assets. Vivendi chairman and CEO Jean-Marie Messier will head Vivendi Universal as chairman and CEO. Joining him as vice chairman responsible for music and Internet activities is Edgar Bronfman Jr., Seagram's president and CEO, as well as Eric Licoys and Pierre Lescure, who will become co-chief operating officers. Licoys is presently COO of Vivendi. Lescure is CEO of Canal Plus. Subject to shareholder and regulatory approval, the merger is expected to close before the end of the year.