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Seagram buyers shun liquor
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April 17, 2000: 4:57 a.m. ET
Report: unwillingness to split liquor from entertainment blocks hunt for partner
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LONDON (CNNfn) - Seagram's efforts to find a merger partner have been hindered by management's refusal to break up the conglomerate and chief executive Edgar Bronfman's wish to remain in an executive role, according to a press report Monday.
Seagram has in the past few months held talks with France's Vivendi (PEX), Walt Disney (DIS: Research, Estimates), News Corp. (NWS: Research, Estimates) and Germany's Bertelsmann, but failed to reach any concrete agreement, according to the Wall Street Journal.
Citing people familiar with the situation, the newspaper indicated that talks with Vivendi are continuing, but put the chances of a merger going ahead at no more than 50:50.
A hurdle to any deal is Bronfman's insistence, apparently for tax reasons, that any buyer takes the whole company, rather than splitting its spirits and entertainment divisions. Seagram, based in Canada but with a stock listing on Wall Street, has a market value of around $30 billion.
 Family-run Seagram (VO: Research, Estimates), a spirits business that for years held large stakes in the U.S. oil and chemicals industries, switched course in 1995 when it sold its big stake in chemicals maker DuPont (DD: Research, Estimates) and paid $5.6 billion for MCA Inc., parent of Hollywood movie production company Universal Studios.
Seagram stock fell 1-11/16 Friday to close at 54-5/16.
None of the companies reportedly involved in the talks would comment. 
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