SEAGRAM, VIVENDI, CANAL PLUS DEAL NEARLY DONE

In a joint statement, the companies said they hoped to formally announce a deal as soon as Tuesday, numerous news agencies reported.

A union of the three companies would join Seagram's entertainment assets, which include Universal Pictures, with the growing telecommunications and Internet infrastructure being developed by Vivendi.

"The negotiations initiated by Vivendi with Seagram and Canal Plus, which could result in an alliance of the three firms, have now entered their final stage," the companies said.

Both companies were expected to vote on a deal at separate meetings today (6/19). The boards held sessions on Sunday and the Seagram board also met on Saturday for an informational update, said sources close to the talks.

"We're not done yet. We still have some issues that need to be addressed," said one source.

Representatives of Vivendi and Canal Plus continued over the weekend to conduct due diligence on Seagram's operations, sources said.

The deal would mark a milestone in Vivendi's quest to transform itself from a utilities conglomerate into a leading-edge global media player.

The company plans to spin off its utility assets this summer. Vivendi will take another step in that direction on today when the company launches its Internet portal Vizzavi with British partner Vodafone AirTouch. First announced in January, Vizzavi will offer Internet access and online services to the group's combined 70 million mobile phone users and pay TV subscribers in Europe.