GE, Vivendi $1 billion apart over NBC Universal stake: report

The difference dampens hopes of a quick resolution to a stand-off holding up Comcast's planned bid for a majority stake in the U.S. broadcast group, the newspaper reported.

Citing people familiar with the negotiations, the newspaper reported that GE and Comcast, the cable operator that wants to take a 51 percent stake in NBC Universal, have been eager to unveil an agreement before next Thursday's Thanksgiving holiday in the United States.

Although GE and Comcast have been working toward an announcement on Monday, GE and VIVENDI remain $1 billion to $2 billion apart on the valuation of the French group's 20 percent stake in NBC Universal, the report said.

Comcast's offer values NBC Universal at about $30 billion, implying a $6 billion valuation for Vivendi's stake. Vivendi in June estimated the value of the stake at $6.3 billion, so would have to take a further writedown should it receive less, the FT said.

However, a 2004 agreement between the companies stipulates that any sale must be conducted at "public market values." This would treat Comcast's offer as a private deal that would not influence the valuation, the report said.

The newspaper said GE's negotiating position is understood to be that current media sector multiples would imply a price of $4 billion-$5 billion. Independent analysts' estimates vary, but Bernstein Research has valued NBC Universal at $27 billion, suggesting Vivendi could expect $5.4 billion for its holding.

Under an agreement struck when Vivendi sold Universal Studios to the GE-controlled NBC in 2004, Vivendi can force an initial public offering of its stake unless GE offers a more attractive price, the FT reported

(Reporting by Steve James; Editing by Lincoln Feast)