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Vivendi eyes Seagram?
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March 26, 2000: 6:31 p.m. ET
Report: French firm seeks $100B link with Seagram, Cox
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LONDON (CNNfn) - French diversified utility Vivendi is in talks to merge its fast-growing media assets with Canada's Seagram and U.S. cable operator Cox Communications to create a $100 billion communications group, according to a report published Sunday.
Vivendi may offer $32 billion for Seagram, whose assets include Universal Studios, and an unspecified amount for Atlanta-based Cox, the fifth-largest U.S. cable player, according to London's Sunday Telegraph newspaper.
Vivendi officials were unavailable for comment.
The French firm is the world's largest environmental services company, but has been under pressure from some shareholders to separate its utility arm from fast-growing media operations which include stakes in Canal Plus, France's largest pay-TV operation, and BSkyB, its British equivalent. The company said last month that it planned a split later this year, alongside a U.S. listing.
Vivendi rival Suez Lyonnaise des Eaux was last week reported to be planning to separate its own utility and communications arms by combining the former with German merger partners Viag and Veba to create Europe's largest power generator.
Seagram has been surrounded by deal speculation in recent weeks, with Rupert Murdoch's News Corp. cited as a potential partner alongside Vivendi and AT&T (T: Research, Estimates).
The Canadian company's assets include one of the world's largest spirits businesses and the music publishing operation acquired from Polygram. The latter has been overtaken as the world number one by Time Warner's (TWX: Research, Estimates) acquisition of Britain's EMI. The Telegraph report said the drinks business was being targeted by U.K.-based Allied Domecq.
Cox has not been linked to either Vivendi or Seagram in the past. The company has six million subscribers and earned a net profit of $852 million last year on sales of $2.3 billion.
Vivendi shares closed up 3 euros at 123.7 euros Friday. Seagram (VO: Research, Estimates) added 1-3/16 at 57-5/16 and Cox (COX: Research, Estimates) lost 7/8 at 43-11/16. 
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