|
Vivendi expands in pay-TV
|
 |
June 7, 1999: 8:49 a.m. ET
Merger with Pathé puts pressure on BSkyB; European TV stocks rise
|
LONDON (CNNfn) - French conglomerate Vivendi stretched its grasp over European pay television Monday by acquiring the TV assets of media group Pathé. The deal sparked speculation of a wider round of consolidation in the European pay-TV market.
Vivendi is merging with Pathé in a three for two stock swap, but will then sell back Pathé's film, newspaper and sports interests to the group's major shareholder, the Seydoux family.
Vivendi will be left with a 20 percent holding in digital broadcaster Canalsatellite, and 17 percent of Rupert Murdoch's British pay-TV unit BSkyB.
Financial terms of the deal weren't disclosed.
Vivendi has a 34 percent stake in Canal Plus, Europe's biggest pay-TV broadcaster, which earlier this year broke off merger talks with BSkyB.
Monday's deal immediately sparked talk that a renewed attempt to link Canal Plus and BSkyB could be in the cards. In Paris, Canal Plus stock soared more than 7 percent to 281 euros, while in London BSkyB jumped almost 4 percent to 589 pence.
Since those talks were broken off, BSkyB Chief Executive Mark Booth has been replaced by Tony Ball.
Vivendi stock rose almost 2 percent to 73.80 euros, and Pathé shares were suspended for the day by the Paris bourse. .
|
|
|
|
|
|
Vivendi
Pathé
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
