Big media merger in the works

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Wednesday, June 14, 2000 | 11:19 a.m.

MONTREAL -- French media giant Vivendi SA is negotiating to buy Universal Studios parent Seagram Co. for more than $30 billion.

Two people close to the talks told the New York Times that Vivendi would pay more than $70 a share for Seagram, whose stock closed Tuesday at $53 a share, up $2.375, as rumors of the merger circulated first in Europe and then in the United States.

Among its media properties, Vivendi owns Canal Plus, a pay-television operation that is participating in the bid, and Havas, an advertising company.

Montreal-based Seagram owns a large record business that includes Polygram, Universal Studios, a 45 percent stake in the USA Networks, theme parks and the Seagram liquor business.

The combined company would be in an excellent position to compete against larger rivals like the pending combination of Time Warner and America Online. Media companies like Vivendi are aggressively integrating production and distribution.