Canal Plus OKs Vivendi, Seagram Deal

PARIS (AP) â€” Shareholders of the French pay-television group Canal Plus SA overwhelmingly approved on Friday the company's proposed merger with Vivendi SA and Canada's Seagram Co., the final

Friday, December 8th 2000, 12:00 am

By: News On 6

PARIS (AP) â€” Shareholders of the French pay-television group Canal Plus SA overwhelmingly approved on Friday the company's proposed merger with Vivendi SA and Canada's Seagram Co., the final step in the deal creating one of the world's largest communications groups.

Some 98.6 percent of the shareholders voted in favor of the merger, which will create the world's second-largest media group behind the proposed pairing of America Online Inc. and Time Warner Inc., whose merger plan is still being reviewed by U.S. regulators.

Prior to the three-way merger, Vivendi already owned a 49 percent stake in Canal Plus.

Approval by shareholders of Canal Plus, Europe's leading pay television company, was the final step before the merger can be completed. On Tuesday, Vivendi and Seagram shareholders separately approved the $30 billion deal to create a company that will be called Vivendi Universal.

Shares in Vivendi Universal will replace Vivendi shares in Paris and New York on Monday. Shares in Canal Plus will remain listed on Paris' main board but leave the CAC-40 index of actively traded French stocks.

Following the vote, Canal Plus reorganized itself into Groupe Canal Plus, which is wholly owned by Vivendi Universal, and Canal Plus SA, in which Vivendi Universal has a 49 percent stake, to comply with French audiovisual regulations. Canal Plus SA will deal exclusively with the management of Canal Plus' French pay-TV.

Shareholders have approved the transfer of advertising activities to a new company, Canal Plus Regie, and of distribution and commercial activities to Canal Plus Distribution. Both are subsidiaries of Groupe Canal Plus.

Canal Plus shareholders will get two Vivendi Universal shares per Canal Plus share, and hold a 12 percent stake in the new Vivendi Universal group. They will retain their 51 percent stake in Canal Plus SA.

Vivendi Universal will offer movies, TV programming, music, sports, games and educational and professional information via digital and analog formats. The idea is to offer consumers music and films via computers, television and mobile phones â€” to conquer both content and distribution for dominance in the multimedia market.