Bronfman says Seagram deal will go ahead

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Vivendi Universal executive vice-chairman Edgar Bronfman Jnr said today he remains fully confident that the sale of Seagram will be cleared by the Federal Trade Commission, as soon as the specific concerns are addressed by the purchasers. "The question is not if the transaction will close, it is a matter of when, which in any case is no later than December 31 2001. We remain completely confident that the specific issues raised by the Commission will be resolved in a timely fashion," he said.

Those issues are limited to certain aspects of the rum category. Under the terms of the purchase and sale agreement, the purchasers are obligated to resolve this regulatory concern - including making any necessary divestitures - in order for the transaction to be consummated by December 31 2001. Separately, Diageo and Pernod Ricard have received regulatory clearance from the European Union, and they are one step closer to approval by Canadian regulatory authorities, following this week's clearance from the Canadian Competition Bureau.

The Seagram Spirits and Wine business has been performing very well throughout the first three quarters of calendar 2001, and its cash flow significantly exceeds the carrying costs of former Seagram Company debt.