VIVENDI SALE OF BSKYB STAKE
MAY GET MERGER OK’D

With an active European regulatory body ready to attack, Vivendi has agreed to a major concession plan in a bid to gain approval of its $44 billion purchase of Seagram.

According to Bloomberg news reports that quote "people familiar" with the deal discussions, Vivendi will sell its stake in pay-TV service British Sky Broadcasting Group in hopes of securing regulatory approval for its planned merger with the Universal parent and Canal Plus.

By agreeing to sell the 23%, worth about $6-$8 billion, Vivendi could avoid an extended probe by the European Union's antitrust commission.

The EU plans to announce it will clear the deal today (10/13), the "familiar" people told Bloomberg.

"Our company doesn't want to stay with minority interests and be a sleeping partner like we are in BSkyB,'' said Eric Licoys, COO of Vivendi, in a phone interview with the business news service last night. Licoys, however, said he hadn't been informed of the commission's decision.

For their part, the EC said it hasn't decided whether to approve the acquisitions and will make a decision by midnight today (10/13), according to a statement faxed to Bloomberg News.

Despite such reports, the Wall Street Journal reports the EC will announce that it will take as many as four more months to investigate the antitrust implications of the deal.

Citing a " person familiar with the situation," the paper said such a decision would disappoint the companies' hopes of a speedy approval of the deal and signal the commission's desire to further scrutinize the emerging market for wireless distribution of music.