Shares of Seagram Co. rose 14% in early trading June 14 after the spirits and entertainment company confirmed it's negotiating a sale to two French concerns. Seagram stock hit $60.31 per share, slightly off its 52-week high of $65.25, when the Montreal-based company said it was in negotiations with conglomerate Vivendi and Canal Plus, a TV company in which Vivendi holds a 49% stake, to create a three-way business combination. Seagram, which had been reported to be in sale negotiations for months, said the two companies approached it. The discussions involve an exchange of Seagram shares for stock in the combined company. A deal could be finalized within the next three weeks. A deal however is not certain, the company said in a news release. A $70 share price has been suggested. Seagram had 1999 revenue of $3.3 billion, with about 39% of that coming from spirits, 31% in music, 24% in filmed entertainment and rest in recreation.
Copyright June 2000, Crain Communications Inc.