Vivendi, EDF May Combine Energy Units

Vivendi, the French media and utility company that’s acquiring Seagram Co., called a news conference along with Electricite de France, Europe’s largest electricity provider, bolstering talk they will combine their energy units. EDF and Vivendi, which agreed to buy Seagram and Canal Plus for about $34 billion this week, will unveil plans to merge their energy businesses to create one of Europe’s largest energy service companies, said Michel Clerc, a spokesman for French trade union CGT. The combination of Vivendi’s Dalkia unit and EDF’s Clemessy joint venture would allow the companies to eliminate a rival and expand their services as European energy markets open to competition, analysts said. Under the agreement, Vivendi will hold 64% of the energy venture, Dalkia Holding, while state-controlled EDF will have a 34% stake, Agence France-Presse reported, citing union officials. Vivendi’s American depositary receipts rose 81 cents to $17.50.