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If Vivendi Stalls NBCU-Comcast Deal, Expect Fallout

Nov 19, 2009 - 7:44 AM EST

Diane Mermigas submits:

It could just be posturing, but Vivendi (VIVEF.PK) says it is in no hurry to sell its 20 percent stake in NBC Universal, which would trigger a $30 billion deal to make Comcast (CMSCA) the majority owner. Even if the transaction does not occur, there will be interesting fallout.

Vivendi is in talks to unload its minority stake to the highest bidder. That could be NBCU co-owner General Electric (GE), a third party, or the public (in a stock offering). Vivendi has until 2012 to sell its stake during an annual window from Nov. 15 to Dec. 10. Sources close to the deal say cash-strapped GE would place $12 billion against the new NBCU to buy out Vivendi. GE would be a minority owner in NBCU with Comcast.

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Source: Seeking Alpha (Nov 19, 2009 - 7:44 AM EST)