Vivendi's Brazil deal could help Comcast bid

Vivendi S.A., the French media conglomerate that owns a 20 percent stake in NBC Universal Inc., has won a bidding war for Brazilian telephone operator GVT (Holding) S.A. for $4.18 billion - seemingly moving Comcast Corp. one step closer to gaining control of NBC Universal.

Analysts say Vivendi could be more likely to sell its stake in NBC Universal to finance the multibillion-dollar GVT acquisition.

General Electric Co., which owns the other 80 percent of NBC Universal, has been negotiating to sell the entertainment operation to Comcast. If finalized, the deal would fulfill the long-held wish of Comcast chief executive Brian L. Roberts to own a major studio and programmer.

Roberts previously failed with an unsolicited bid for Walt Disney Co.

Neither Comcast nor General Electric commented yesterday on speculation that merger negotiations were taking place over NBC Universal.

Washington public-interest groups had been anticipating an announcement Sunday night or yesterday. The Free Press, which opposes media conglomerates, says it will campaign nationally against a Comcast-NBC Universal merger. Some say the deal could be a litmus test for how the Obama administration treats media mergers.

The complex Comcast-NBC Universal deal is contingent on Vivendi's selling its stake back to GE, which would like to focus on its core industrial businesses.

Vivendi has until mid-December to make a decision, and some believe the French company could hold out for a higher price. Vivendi valued its 20 percent stake in NBC Universal at $6.3 billion on its balance sheet.

A Vivendi spokesman has said the company was in "no hurry" to sell its stake in NBC Universal. Vivendi's top executive, Jean-Bernard Levy, has said NBC Universal is not a core asset.

Vivendi's winning bid for GVT came as a surprise. Many analysts had thought it would not bid against Spain's Telefonica S.A. for the Brazilian company.