GE Still Haggling With Vivendi, Report Says

FAIRFIELD, Conn. (TheStreet) -- General Electric (GE) has yet to reach agreement with Vivendi SA over the sale of Vivendi's 20% stake in NBC Universal, the Wall Street Journal reported Wednesday.

Citing anonymous sources, the newspaper reported the talks are "the last major hurdle" to a much-anticipated joint venture between GE and Comcast Corp. (CMCSA), in which the cable operator would get a majority stake in NBC Universal.

According to the report, Vivendi is seeking a higher price for its stake, as well as certain "deal protections." Nonetheless, the report said the differences between the two sides were unlikely to get in the way of a deal. The report says GE values NBCU at $30 billion, which would make Vivendi's stake worth $6 billion, though Vivendi valued its stake at the equivalent of $6.3 billion in June.

Though a deal announcement is expected any day now, Vivendi could decide to do an initial public offering of its stake, or to hold onto it, though there have been several reports indicating Vivendi wants to unload its interest in NBCU.

Assuming a deal is struck, it could still take six months to get the necessary regulatory approval, the Journal reported.

GE's sale of NBCU would be consistent with a stated strategy of focusing more on its industrial businesses, such as healthcare equipment and energy-related technology. Despite the size of the deal, the more important task for GE is shrinking its financial unit, as GE continues to trade more like a financial company.