StudioCanal Stock Climbs on Prospect of Vivendi Buy

StudioCanal shares rose 21% after Vivendi Universal Chief Executive Jean-Marie Messier said the owner of Universal Studios may buy the 14% of Canal Plus’ film division that it doesn’t already own.

The shares rose $1.75 to $9.98 after earlier rising as high as $10.17. StudioCanal shares were the biggest gainer on the Paris stock exchange.

Messier said Tuesday that it makes sense to buy the shares in StudioCanal that are publicly traded and integrate it withVivendi Universal’s film operations.

Universal Studios is the producer of films including “Dr. Seuss’ How the Grinch Stole Christmas,” and StudioCanal titles include “American Pie” and “Total Recall.”

“In the middle term, I think it will have to happen,” Messier said during an interview on Bloomberg Television.

Formerly known as Canal Plus Image, the owner of the world’s third-biggest film catalog raised $170 million in a May share sale to fund movie production and distribution in Europe.

“If you are not one of StudioCanal’s minority shareholders yet, get in the stock now and wait,” said Edouard Tetreau, an analyst with Credit Lyonnais Securities, in a note to investors.

Vivendi completed the $40 billion acquisitions of Seagram Co. and most of Canal Plus last week, transactions that will make it the world’s second-biggest media company after America Online Inc. completes its purchase of Time Warner Inc.

Canal Plus owns 82.3% of StudioCanal and Vivendi possesses 3.1%, according to Bloomberg data.

StudioCanal Chief Executive Vincent Grimond could not be reached for comment on Messier’s remarks.