NEW YORK (AP) — Former Vivendi CEO Jean-Marie Messier told a jury Friday he made mistakes in his troubled bid to turn the French water company into a global media giant, but he never misled shareholders about the risks. AP – Jean- Marie Messier, former Chairman and CEO of French conglomerate Vivendi exits Manhattan federal court with Crystal Delaval … {”s” : “cmcsa,viv”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} Messier said he strove in good faith to build the company, but he didn’t foresee technological limitations and worldwide financial problems that contributed to its near-bankruptcy in 2002. “Some of my management decisions turned wrong, but fraud? No. Never. Never. Never,” he said, testifying in a federal lawsuit filed for thousands of investors who say Vivendi hid its worsening finances. Vivendi was mainly a water company when Messier became its chief executive in 1996. An investment banker who had specialized in media and communications interests, he embarked on a buyout binge that included the Universal film studios and music label in the United States, European pay-TV station Canal Plus, a French publishing arm and a major French cell-phone operator. Messier became a star of the French business world. But the acquisition spree saddled the company with billions of dollars in debt, and its shares lost more than 80 percent of their value between 2000 and 2002, when Messier was forced out. Vivendi nearly went bankrupt before selling many of its businesses to survive. The investors say executives knew the company was in trouble but kept shareholders in the dark. Their lawyers have contrasted internal documents warning about the company’s problems with public assurances that it was in good shape. The company’s lawyers have said it always had enough cash and credit to pay its bills and always followed accounting rules. Messier told the court he envisioned Vivendi blending entertainment with such communications technology as cell phones. But the ideas proved to be ahead of the technology of the time, and the company was jolted by such events as the financial shock following the Sept. 11 terrorist attack, he said. “Yes, there were risks. There’s always risk when you try to implement a strategy,” he said, testifying in English rather than his native French. “But these risks, they were disclosed.” Claims that he duped investors, pushed the company to the brink of ruin and engineered losses for shareholders are hurtful and “outrageous,” he said. “I did my best, my very best. And sitting here today, I’m just sad it did not prove to be enough,” he said. Messier, 52, is expected to continue testifying for several days. He now runs a financial consulting business. Separately, Messier and other former top executives were ordered last month to stand trial in France on charges of misleading investors. Meanwhile, Vivendi SA is currently weighing whether to sell its 20-percent stake in NBC Universal in a deal that would help clear the way for Comcast Corp., the biggest U.S. cable TV operator, to create one of the world’s most powerful media companies. Follow this link: Ex-Vivendi CEO: I made mistakes but never misled (AP)

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By Jui Chakravorty and Anupreeta Das NEW YORK (Reuters) – General Electric and Vivendi are moving closer to a deal on NBC Universal, with Vivendi agreeing to accept payment for just one-third of its stake until a related deal with Comcast closes, according to a source familiar with the situation. Talks between Vivendi SA and General Electric Co have been holding up Comcast Corp’s plan to buy a controlling stake in NBCU. Vivendi has to agree to sell its 20 percent stake to GE before the Comcast deal, which would be the biggest in media this year, can progress. While Vivendi and GE have not agreed on a price yet, the French media company’s acceptance of a staggered payment schedule shows it is willing to compromise to pave the way for Comcast, the largest U.S. cable service provider. Vivendi had previously asked to be paid fully upfront to avoid regulatory risk — U.S. antitrust enforcers are expected to take at least a year to scrutinize the Comcast-NBCU deal. Vivendi values its stake in NBCU, acquired in 2004, at $6.1 billion, according to sources familiar with the situation. One said GE’s latest offer is about $500 million lower, while two people described the gap as less than $1 billion. Comcast, which has long coveted owning media content, has been in talks for months with GE, which owns 80 percent of NBCU and has been under pressure from some shareholders to divest its media business. The plan is for GE to sell Comcast a 51 percent stake in a proposed joint venture. Comcast would contribute its cable networks and $4 billion to $6 billion in cash to the venture. The two companies have agreed to value NBC Universal at about $30 billion, sources previously told Reuters. But for that deal to happen, GE has to buy out Vivendi’s stake first. PUT OPTION Every year between November and December, Vivendi has to decide whether to exercise its “put” option to sell its stake. It could also demand an initial public offering for NBC Universal instead, putting it in a strong bargaining position. Vivendi acquired Brazilian telecoms group GVT in a $4.8 billion deal last week. “Following the GVT deal, we believe Vivendi will ultimately sell its stake in NBCU, but not at any price … Similarly, GE needs Vivendi’s stake for Comcast for the tie-up to go through and we see a compromise as likely,” UBS wrote in a note. Differences in valuation and when Vivendi should get paid have slowed the talks, the sources said, dampening hopes of GE and Comcast announcing a deal before the U.S. Thanksgiving holiday next Thursday. “There seems a good deal of posturing on all sides,” Citi analysts wrote in a note on Friday, adding they valued Vivendi’s stake at $5.9 billion. “Vivendi’s liquidity rights (right to force an IPO at some point) may well be unappealing to Comcast as a potential majority owner of NBCU over time. As such, we think that Vivendi’s leverage in negotiations will be reasonably strong,” the analysts wrote.  Continued… Read the r est here: GE, Vivendi make progress on NBC Universal

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PHILADELPHIA (AP) — A deal for Comcast Corp. to buy a controlling stake in NBC Universal and create one of the most powerful media companies in the world is taking longer than expected as the current owners tussle over price. AP – FILE – In this Dec. 3, 2007 file photo, a view of the headquarters of Vivendi SA in … {”s” : “cmcsa,ge,viv”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} Further complicating matters is Vivendi SA’s recent public statement that it might not sell its minority stake in NBC Universal at all. Such a decision could foil General Electric Co.’s plans to then sell a majority interest to Comcast. Comcast, the largest cable TV operator in the United States, wants NBC Universal largely for its lucrative cable channels, but it isn’t likely to raise its offer. If GE had to spend more money to get Vivendi to sell, it will have to absorb the additional cost. That’s because Comcast’s agreement with GE is “set” and separate from the Vivendi talks, according to a person who is familiar with the situation but spoke on condition of anonymity because the person is not authorized to disclose private negotiations. Plans currently call for GE, which owns 80 percent of NBC Universal, to buy Vivendi’s 20 percent stake and sell 51 percent ownership in the entire unit to Comcast for about $5 billion to $7 billion in cash. Comcast would contribute cable networks such as E! and Style to a new NBC Universal joint venture with GE, raising Comcast’s bid to about $15 billion. The new NBC Universal would carry $8 billion to $10 billion of debt and operate under Comcast as its majority owner. But to make it work, Vivendi first has to sell its stake, and a top Vivendi executive told investors at a conference in Barcelona on Thursday that it doesn’t have to sell NBC Universal this year. “We’re not forced to do anything,” Vivendi Chief Financial Officer Philippe Capron said. “We can also just say no.” Vivendi, a media and entertainment conglomerate based in Paris, could be posturing because all sides have a reason to do the deal. GE, a technology, media and financial services company with headquarters in Fairfield, Conn., wants to unload NBC Universal, a unit that doesn’t fit in well with its other businesses. The cash would help prop up its financing unit, GE Capital, which posted big losses from real estate and other industries during the financial meltdown. Vivendi also could use additional funds especially after last week, when it took a controlling stake in Brazilian telecommunications operator GVT SA for $4.2 billion. The French company has called its NBC Universal holding as “non-core.” Comcast, meanwhile, wants to beef up its content assets. NBC Universal spans the NBC and Telemundo broadcast networks; cable channels such as Bravo and CNBC; the Universal Pictures movie studio and Universal theme parks. The acquisition would turn the Philadelphia-based cable TV operator into one of the world’s largest entertainment companies. An agreement between Comcast and GE was supposed to be announced as early as this week. But now the parties are bracing for talks to stretch into December. Vivendi’s Capron said no decision has yet been made. “We’re not there yet. I read the papers like all of you so I learn about all the negotiations with GE that way. Apparently they’re close to a deal with Comcast, which means that they would need to be close to a deal with us,” he said. Capron said Vivendi had no interest in being part of a new Comcast-controlled NBC Universal, but he said the decision on whether to exit the company is “a bit more complex” this year. Vivendi has an annual option to dispose of its stake in NBC Universal. This year’s window runs from Nov. 15 to Dec. 10. GE has right of first refusal and is expected to buy that stake. However, if Vivendi does not agree on a price with GE, Vivendi can either hold on to its shares or sell them to other investors through an initial public offering. Either option could derail the Comcast-GE deal. “This year’s a bit different because this decision that we have to take in the next three weeks is in conflict with the GE-Comcast deal,” Capron said. Keller reported from Paris. Visit link: GE, Vivendi talks over NBC Universal stretch on (AP)

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* GE, Vivendi up to $1bln apart on value NBCU stake-sources * GE, Vivendi talks also hinge on timing of stake payment * Vivendi values NBC stake at $6.1 bln – source * Disagreement holds up Comcast-GE NBCU joint venture (Adds sources on GE, Vivendi disagreement, background on Vivendi’s options, analyst comment,) By Jui Chakravorty and Dominique Vidalon NEW YORK/PARIS, Nov 20 (Reuters) – Talks on the sale of Vivendi SA’s ( VIV.PA ) NBC Universal (NBCU) stake to General Electric Co ( GE.N ) hinge on when Vivendi would get paid as well as how much, people familiar with the matter said on Friday. The two sides are up to $1 billion apart in valuing Vivendi’s 20-percent stake in NBCU, the sources said. Vivendi values its stake at $6.1 billion, one of the sources said. It also wants to get paid for its stake upfront rather than wait for the closure of a deal between GE and Comcast Corp ( CMCSA.O ) over NBCU, the sources said. GE’s proposed deal with Comcast involves turning NBCU into a joint venture, 51 percent owned by Comcast and 49 percent owned by GE. Comcast would contribute between $4 billion and $6 billion in cash, as well as its cable assets, to pay for its stake. Vivendi did not return calls asking for comment. Vivendi has an annual month-long window that runs until Dec. 10 in which to exercise an option to sell the stake back to GE. It could also demand an initial public offering for NBCU instead, putting it in a strong bargaining position if GE and Comcast are in a hurry to get the deal done. “There is a conflict between the normal exit provision, through the yearly window, and the deal allegedly being negotiated between Comcast and GE,” Vivendi’s finance chief told Reuters this week on the sidelines of an investor conference. “If we do send them a letter today saying we’ll trigger, meaning we want an IPO in the spring, it’s not consistent with the fact that they are signing a deal with Comcast that does not include an IPO,” Philippe Capron said at the event in Barcelona.  Continued… Go here to see the original: UPDATE 2-Vivendi stake sale in NBCU hinges on price, timing

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PARIS/NEW YORK (Reuters) – General Electric (NYSE: GE – News ) and Vivendi (Paris: VIV.PA – News ) are at least $1 billion apart in their valuation of the French group’s stake in NBC Universal, the Financial Times said, dampening hopes of a swift sale. Reuters – An NBC sign on the General Electric building in New York, October 5, 2009. REUTERS/Mike Segar … {”s” : “^fchi,cmcsa,ge”,”k” : “c10,l10,p20,t10″,”o” : “”,”j” : “”} Analysts believe that after Vivendi’s recent costly acquisition of Brazil’s GVT (Sao Paolo: GVTT3.SA – News ), a compromise over valuation is nevertheless likely, though they feel selling the 20 percent stake is not vital for Vivendi’s financial health. “Following the GVT deal, we believe Vivendi will ultimately sell its stake in NBCU, but not at any price … Similarly GE needs Vivendi’s stake for Comcast for the tie up to go through and we see a compromise as likely,” UBS said in a note. Vivendi officials could not be immediately reached for comment. The company’s shares were down 0.4 percent at 19.08 euros at 1054 GMT, underperforming a 0.4-percent rise in France’s CAC (Paris: ^FCHI – News ) bluechip index. The differences dampen hopes of a quick resolution to a stand-off holding up Comcast’s (NasdaqGS: CMCSA – News ) planned bid for a majority stake in the U.S. broadcast group, the newspaper reported. GE owns 80 percent of NBCU. On Thursday, Vivendi’s Chief Financial Officer Philippe Capron said the French group was close to selling its stake in NBCU but that its board had not yet made a decision as the situation was “complex.” Selling its NBCU stake would give Vivendi more financial headroom, notably if it were to seize further acquisition opportunities in emerging countries, Capron said. Vivendi, which last week gained control of GVT in a deal valuing the Brazilian company at $4.8 billion, has made clear it would tap available credit lines of 6 billion euros for the acquisition. But proceeds from a future NBCU sale could be used to help the group stick to a policy of protecting its investment grade rating and strong dividend if it were to seal more deals in emerging countries or buy out Canal Pus minorities. “Both for the sake of sentiment and to safeguard the dividend, we believe Vivendi needs to do a deal,” Citi said in a recent note. Citing people familiar with the negotiations, the FT reported that GE and Comcast, the cable operator that wants to take a 51 percent stake in NBC Universal, have been eager to unveil an agreement before next Thursday’s Thanksgiving holiday in the United States. Although GE and Comcast have been working toward an announcement on Monday, GE and Vivendi remain $1 billion to $2 billion apart on the valuation of the French group’s 20 percent stake in NBC Universal, the report said. Comcast’s offer values NBC Universal at about $30 billion, implying a $6 billion valuation for Vivendi’s stake. (Reporting by Dominique Vidalon, Editing by Sitaraman Shankar) Read more from the original source: GE, Vivendi differ on NBCU valuation: report (Reuters)

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* Vivendi has no intention to stay onboard future NBCU * May exit NBCU stake, no decision yet (Adds details, CFO comments to Reuters) BARCELONA, Nov 19 (Reuters) – Vivendi ( VIV.PA ) could exit from U.S. media group NBCU Universal as it has no intention to be part of the future joint venture being discussed by Comcast ( CMCSA.O ) and General Electric ( GE.N ), its chief financial officer said on Thursday. Philippe Capron also told the Morgan Stanley Media & Telecoms conference that selling its 20 percent stake in NBCU would give Vivendi “additional financial headroom” after it gained control of Brazil’s telecoms operator GVT ( GVTT3.SA ) last week. “We are not interested in staying onboard a new GE-Comcast ownership of NBCU … we will exit and it will give us more headroom,” Capron said, adding “We are not there yet.” Capron later told Reuters on the sideline of the conference: “We have never been closer to the end of this story.” But Vivendi’s board had made no decision on the matter, he said. When asked if negotiations over NBCU were about the price, he said: “It often is.” General Electric, which owns 80 percent of NBCU, and Comcast Corp have agreed on the structure of the board for the proposed joint venture with NBC Universal, a person familiar with the matter said last week. [ID:nN13483356] Any deal between GE and Comcast would depend on Vivendi selling its NBCU stake. Each year between mid-November and mid-December, Vivendi has to decide whether to exercise its put option to sell the stake. This year, Vivendi is eager to dispose of the stake and is determined to get good value for it, sources have said. Last week, Vivendi snatched Brazilian telecom group GVT ( GVTT3.SA ) from under Telefonica’s ( TEF.MC ) nose in a dramatic and high-priced purchase. [ID:nN13479709] Vivendi’s bid values GVT at 7.2 billion reais, or about $4.8 billion against Telefonica’s offer of $4 bln. Faced with a more costly acquisition pricetag, Vivendi was however more likely to now sell its holding in U.S media group NBCU to help fund the deal, some analysts have said. (Reporting by Dominique Vidalon and Georgina Prodhan ; Editing by Jon Loades-Carter) Visit link: UPDATE 1-Vivendi eyes NBC Universal exit – CFO

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By Dominique Vidalon and Nicola Leske PARIS (Reuters) – Vivendi’s shares fell on Monday as investors fretted that its dramatic, high-priced purchase of Brazilian telecom group GVT from under Telefonica’s nose signaled more dealmaking. Vivendi Chief Executive Jean-Bernard Levy — mindful of a huge acquisition spree under former CEO Jean-Marie Messier that left Vivendi with a staggering pile of debt — has cultivated a reputation for shunning overpriced deals. But in a surprise move, Vivendi on Friday said it gained control of GVT for up to 4.12 billion reais, beating Telefonica to gain a foothold in Latin America’s biggest market, where it does not yet have a presence. Vivendi’s bid values GVT at 7.2 billion reais, or about $4.8 billion against Telefonica’s offer of $4 billion. SG credit analyst Juliano Torii said that Vivendi may have been under too much pressure to succeed after walking away from some options in the past and may have rushed into the deal, agreeing to a higher than expected price. “I am concerned that they put the bid together in a bit of a hurry,” Torii said. The move defied the predictions of many analysts who had expected Vivendi to throw in the towel on GVT to stick to a policy of protecting its investment-grade debt ratings and paying high dividends. “We had given high marks to management for its discipline in the past year, avoiding overpaying for assets in Spain and Africa. It would look like even this discipline has been set aside,” said Bernstein Research in a note. Vivendi shares lost 2.7 percent by 1452 GMT, underperforming the higher DJ STOXX telecom and media indexes, and were the worst losers among French bluechip stocks. Telefonica shares gained 0.6 percent as most analysts agreed it was a minor issue for the Spanish telecoms group. Citigroup warned however that there was a 25 percent chance that Vivendi and Telefonica would continue the bidding war. Portuguese broker BPI said there was still room for consolidation in the sector in Brazil, namely in the mobile business, and Telefonica will most likely play a central role. GVT shares rose 3 percent in Brazil. MORE EXPENSIVE M&A TO COME? Vivendi is keen to expand in emerging markets given its mature portfolio, which includes Maroc Telecom and France’s second-biggest mobile phone operator SFR — potentially burdened by a worsening regulatory environment and a fourth mobile operator emerging in France. But the French water utility-turned-global media conglomerate, which owns music company UMG, pulled out of talks with Kuwaiti mobile operator Zain this year over price issues and last year dropped its pursuit of Saudi Arabian phone operator Oger Telecom.  Continued… Read the original here: Vivendi investors fret about GVT price

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By The Associated Press PARIS – Vivendi SA is set to take control of Brazilian telecommunications operator GVT SA after trumping a rival offer from Spain’s Telefonica SA. The French media and entertainment giant said in a statement late Friday that it has acquired 37.9 per cent of GVT’s share capital from its controlling shareholders and other third parties, and has also entered into call option agreements to buy another 19.6 per cent. In total, Vivendi will control 53.7 per cent of GVT, and it now plans to make an offer to remaining shareholders at 56 reals per share. The offer values GVT at 2.8 billion euros, Vivendi said, trumping Telefonica’s 2.7-billion euro ade earlier this month. Vivendi originally offered 42 reals per share for GVT in September. In the statement, Vivendi CEO Jean-Bernard Levy said “Vivendi plans to be present for the long term in Brazil … Our aim is to further reinforce GVT’s dynamism, give it a definitive shareholder and rapidly expand the company in those regions of Brazil where it currently has only a small presence.” Vivendi already owns telecommunications operators in France and Morocco. Industry watchers have been waiting to see whether Vivendi would walk away from GVT or outbid Telefonica because of how the decision could influence a much larger choice Vivendi has to make. Vivendi owns a 20 per cent stake in the U.S. media giant NBC Universal. Starting Sunday, Vivendi can exercise an option to sell its stake in NBC Universal. General Electric Co., which owns the rest of the entertainment unit, has first right of refusal and is expected to buy that stake. GE and U.S. cable TV operator Comcast Corp. are negotiating a deal that would see Comcast take a 51 per cent stake in NBC Universal, but the deal hinges on Vivendi’s decision to divest its share. More: Vivendi to acquire Brazilian telecom operator GVT

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PARIS (AP) — Vivendi SA is set to take control of Brazilian telecommunications operator GVT SA after trumping a rival offer from Spain’s Telefonica SA. The French media and entertainment giant said in a statement late Friday that it has acquired 37.9 percent of GVT’s share capital from its controlling shareholders and other third parties, and has also entered into call option agreements to buy another 19.6 percent. In total, Vivendi will control 53.7 percent of GVT, and it now plans to make an offer to remaining shareholders at 56 reals per share. The offer values GVT at euro2.8 billion ($4.2 billion), Vivendi said, trumping Telefonica’s euro2.7 billion bid made earlier this month. Vivendi originally offered 42 reals per share for GVT in September. In the statement, Vivendi Chief Executive Jean-Bernard Levy said “Vivendi plans to be present for the long term in Brazil … Our aim is to further reinforce GVT’s dynamism, give it a definitive shareholder and rapidly expand the company in those regions of Brazil where it currently has only a small presence.” Vivendi already owns telecommunications operators in France and Morocco. Industry watchers have been waiting to see whether Vivendi would walk away from GVT or outbid Telefonica because of how the decision could influence a much larger choice Vivendi has to make. Vivendi owns a 20 percent stake in US media giant NBC Universal. Starting Sunday, Vivendi can exercise an option to sell its stake in NBC Universal. General Electric Co., which owns the rest of the entertainment unit, has first right of refusal and is expected to buy that stake. GE and US cable TV operator Comcast Corp. are negotiating a deal that would see Comcast take a 51 percent stake in NBC Universal, but the deal hinges on Vivendi’s decision to divest its share. Read the original here: Vivendi to acquire Brazil’s GVT (AP)

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