Vivendi rejects approach from Sebastian Holdings

0 Comments | AFP, May, 2006

PARIS (AFP) — The French media and telecom group Vivendi says it has rejected an approach from its biggest shareholder Sebastian Holdings.

Vivendi said that it considered the approach, in the form of "a request for cooperation" to be directed at "dismembering the group". The price of shares in Vivendi was showing a gain of 4.39 percent to 29.02 euros in initial trading.

A source close to Sebastian Holdings, an investment fund, told AFP that it had proposed buying all of the shares in Vivendi at 33.50 euros per share, valuing the group at 38.6 billion euros (49.8 billion dollars).

The source, which declined to be named, said that the offer followed "friendly talks" with Vivendi, and had been made at Vivendi's request.

However, the supervisory board of...