Vivendi has announced thatit will not exercise a right to unload its 20% share of NBC Universal inJanuary.
Under a 2004 deal whichsaw Vivendi sell Universal to GE, the former retained a 20% stake in the newlyformed NBC Universal and was given the option to begin selling in 2006 althoughthat option was ultimately extended to January 2007.
Although Vivendi hasrecently said it would not hold on to the NBC Universal stake for long, thecompany said in a press release Thursday that the timeline of its right todemand an IPO of NBC Universal and of GE's right to call Vivendi's interesthave been extended. The demand right "can now be exercised in November eachyear from 2007 to 2016, with the closing at market value taking place over thefollowing year," according to the press release.
Further, the release notedthat the call option in GE's favor can now be exercised in May each year from2011 to 2017 with a floor price of $8.3 billion, which would increase each yearfrom May 2009 based on the U.S. Consumer Price index.