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Similar cultural and language differences led Matsushita to sell Universal to Seagram in the first place.

PARLEZ-VOUS MERGER?

Will Vivendi-Seagram Deal Be, How You Say, Dogged By Miscommunication?
Of the many assets a combined Vivendi-Seagram company bring to the table, perhaps the most important would be a Berlitz guide.

Although he grew up in bilingual Montreal, Seagram Co. President/CEO edgar bronfman',390,400);">edgar bronfman',390,400);">Edgar Bronfman speaks only "a tiny little bit" of French--asa Seagram spokeswoman confirmed to Bloomberg--requiring him to wear earphones to translate the remarks of Vivendi boss Jean-Marie Messier at last week's press conference to announce the merger of their two companies. Could that language difference harm the two companies' synergy?

Investors may harbor such doubts, which has translated into a decline in both companies' stock prices since the deal was made public. Seagram closed today at 58 3/16, down 9/16, while Vivendi stock has dropped by 20%, or the dollar equivalent of $88 per share, since rumors of the merger circulated earlier this month.

There is also been doubt expressed that the French can succeed in Hollywood with overseas management. Similar cultural and language differences led Matsushita to sell Universal to Seagram in the first place.

Meanwhile, Vivendi Universal's wonderful world of wireless could also come unraveled. The company was hoping to use Vizzavi,its new Internet portal venture with Britain's Vodafone, along with Cegetel's SFR, the second-largest wireless phone network in France (of which they own 59%), to beam Universal's movies and music to wireless-device users. Unfortunately, current bandwidth is so low, film and music transmission, according to one analyst, "is something that's at least three or four years away." And, even with the ability to offer Universal artists and titles, Vivendi will still need to cut deals with other music labels and movie studios to supplement that material… Sacre bleu!! Can the Jerry Lewis Channel be far behind?

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