Vivendi valued buy Sky to create a European giant … – Reuters Spain

By Pamela Barbaglia and Sophie Sassard

LONDON (Reuters) – The French media conglomerate Vivendi is considering purchasing the pay-TV group Sky, as one of several options to expand the capacity of its own television channel Canal Plus three sources familiar with the matter said.

Vivendi is set at Sky after reviewing the targets downward television payment of Turkey and other fast-growing markets in Europe, said one source.

Sky has a market value of 17,600 million pounds (24,100 million euros) but Vivendi could cost up to 28,000 million pounds including debt, sources said.

Vivendi has yet to decide whether to go ahead or not with supply sources said, adding that the study is in a very early stage.

Any agreement between Vivendi and Sky join two powerful business personalities: Rupert Murdoch, whose Twenty-First Century Fox owns 39 percent of Sky, and Vincent Bolloré, president of Vivendi and largest shareholder, which recently raised its stake in the French group to 12 percent

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The sources said they did not think that Vivendi has made any approach to the boards Sky or Fox.

The spokesmen of Vivendi, Sky Bollore declined to comments. Twenty-First Century Fox declined to comment.

Bolloré considers Canal Plus as the core business of Vivendi and the company could not proceed with the offer without full support, sources said. Continued …