Vivendi, NBC Merger Talks Hit Snags

Communications Today, Oct 6, 2003

Negotiations between Vivendi Universal [NYSE: V] and General Electric [NYSE: GE]-owned NBC have hit some bumps in the road, according to sources close to the merger talks. While the parties were still talking as of Friday, lastminute details of the deal had not been finalized, the sources said.

Vivendi and NBC executives on Friday were reportedly deadlocked over what sources described as some "minor details" concerning issues related to minority shareholders and tax liabilities. Meanwhile, the deal on the entertainment business, with an estimated value of nearly $42 billion and includes TV production facilities as well as theme parks, appears to be going forward despite the last-minute glitches. After announcing a preliminary agreement last month, Vivendi honcho Jean Rene Fourtou and GE's Jeffrey Immelt had wanted to finalize the deal by last Friday.

Spokespersons for Vivendi and NBC on Friday declined to comment on the negotiations.

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