Vivendi rejects bid by MGM

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Wednesday, July 16, 2003 | 11:34 a.m.

PARIS -- Vivendi Universal rejected a bid for its U.S. entertainment assets from Metro-Goldwyn-Mayer Inc., saying the $11.5 billion offer price was too low, a person familiar with the talks told the Associated Press today.

MGM had offered earlier this week to sweeten its all-cash bid by $300 million to $11.5 billion -- on the condition that Vivendi reveal more financial information about the companies it is selling by July 21.

But Vivendi dismissed the offer as insufficient and said it didn't want to cave in to pressure from MGM, a source told AP.

Investor Kirk Kerkorian controls MGM as well as the Las Vegas-based casino resort company MGM MIRAGE.