Summary:

NBCU has dodged one potentially damaging bullet for now … Vivendi has decided to stick around as a 20-percent owner of NBC Universal indef…

NBCU has dodged one potentially damaging bullet for now … Vivendi has decided to stick around as a 20-percent owner of NBC Universal indefinitely rather than exercise the right it would have had to sell its share back to GE as of January 2007. The deal dated back to GE’s $14 billion acquisition of Vivendi Universal Entertainment back in 2004; this would have been Vivendi’s first chance to take its money out of the GE division. Instead, the French company and GE have agreed to an extension and an amendment. Vivendi can demand an IPO in November each year from 2007 through 2016; its liquidity right has been upped to $4 billion from $3 billion. GE’s call option can be exercised in May each year from 2011-2017 with a floor price of $8.3 billion tied to the Consumer Price Index. Release. (Via Multichannel News)

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