Concessions Could Alter Vivendi Deal

PARIS — Vivendi’s agreement to acquire Seagram Co. and part of Canal Plus was approved by a French regulator after concessions by Vivendi. But analysts suggested the changes could jeopardize the terms of the $46-billion accord.

The French media and utility company agreed to modify the acquisition, giving control of Canal Plus’ French pay-TV subscriber base back to Canal Plus Programmes, a unit that will be 49% owned by Vivendi, the regulator said.

“This is a failure for Vivendi,” said Charles-Henri de Mortemart, an analyst with ODB. “Vivendi said this wouldn’t change the merger with Seagram, but I think the terms may now be reviewed to Seagram’s benefit.”

Vivendi and Canal Plus said Wednesday that the original share-exchange ratios between the two companies “will not be modified.”

Seagram is “very pleased with the ruling,” a spokeswoman said.

Vivendi said last month that it would acquire the 51% of Canal Plus that it doesn’t already own for about $11.9 billion.

Vivendi also said that it would pay $77.35 in stock for Seagram’s shares, 21% more than the close on June 19, the day before the deal was announced, for a total of $34 billion.

Seagram shares closed up 69 cents at $57.19 on the New York Stock Exchange.