M&A

20 November, 2009

GE, Vivendi talks focus on price, timing - sources

NEW YORK/LONDON, Nov 20 (Reuters) - Talks on the sale of Vivendi SA's (VIV.PA) NBC Universal stake to General Electric Co (GE.N) hinge on when Vivendi would get paid as well as how much, people familiar with the matter said on Friday.

The two sides are up to $1 billion apart in valuing Vivendi's 20 percent stake in NBC Universal, the sources said.

Vivendi values its stake at $6.1 billion, one of the sources said. It also wants to get paid for its stake upfront rather than wait for a GE deal with Comcast Corp to close, the sources said.

GE's deal with U.S. cable company Comcast (CMCSA.O) for NBC Universal depends on getting the French media conglomerate to sell its stake in the broadcast and cable unit.

GE's proposed deal with Comcast involves turning NBC Universal into a joint venture, 51 percent owned by Comcast and 49 percent owned by GE. Comcast would contribute between $4 billion and $6 billion in cash, as well as its cable assets, to pay for its stake.

Analysts expect the GE-Comcast deal to face regulatory hurdles. (Reporting by Jui Chakravorty, Quentin Webb and Anupreeta Das, editing by Gerald E. McCormick)

Source: http://www.reuters.com