The High Stakes of a Possible Vivendi-Seagram Merger

LONDON -- Vivendi (VVDIY Quote) CEO Jean-Marie Messier's glitzy ambitions to turn the onetime French utilities company into a media powerhouse by buying Seagram (VO Quote) will carry Hollywood stakes that go far beyond the price of the deal.

The possible merger raises questions about Messier's ability to manage a continually sprawling empire as well as Vivendi's complex corporate structure and its substantial debt load. For more on the possible deal see an earlier story.

A Wednesday posting on Vivendi's Web site confirmed that it is once again in talks to buy Seagram, the Canadian media and drinks conglomerate run by Edgar Bronfman Jr. Talks between the two companies, which were first reported in January, had supposedly broken down over price. Back at the bargaining table, the pair apparently has overcome that stumbling block. Analysts say Vivendi would be willing to pay around $30 billion, or $70 a share for Seagram, an 16% premium over Wednesday afternoon's price. ...