New Problems in Vivendi Acquisitions

Vivendi may face new difficulty in its acquisitions of Seagram Co. and Canal Plus after a representative from the French movie industry said he will ask a court to force more concessions from the company. The acquisition, which would create the world’s second-largest media company, has been approved by France’s audiovisual regulator, CSA. Film representatives are worried the French television broadcaster won’t be able to meet its obligation to subsidize French movies. To win regulatory approval, Vivendi agreed to return control of Canal Plus’s French subscriber base to Canal Plus Programmes. The French media and utility company initially planned to absorb it along with the rest of Europe’s biggest pay-TV company. Speaking in Paris, Vivendi Chief Executive Jean-Marie Messier said his company will not go beyond the existing agreements and commitments of Canal Plus. The ARP will file a complaint in the next two to three weeks. Shareholders of Vivendi, Seagram and Canal Plus are scheduled to vote next week.