Steve Mehs
12-13-02, 04:25 AM
Now that EchoStar's proposed merger with DirecTV has collapsed, Vivendi Universal may try to restructure its ownership in EchoStar, a stake it got last December.
According to the Financial Times, the shake-up going on at Vivendi will see the French/Hollywood media giant convert its stock in EchoStar - acquired for $1.5 billion - into ordinary shares in the satellite TV company. The move would help Vivendi retreat from the global media ambitions it had under Jean-Marie Messier, the former Vivendi chief who remains on EchoStar's board.
Under its EchoStar deal, Vivendi could only convert its Class D preference stock in EchoStar into Class A common shares following the completion or termination of the DirecTV merger. Earlier this week, EchoStar and DirecTV abandoned the deal.
In response, EchoStar pointed to the statement it released in November concerning the Vivendi stake: Since the Vivendi contingent value rights cannot be exercised for 30 months, they will not result in any payment by EchoStar until 2005 at the earliest, and it's possible that no payment will ever be required, the satellite TV company said.
From SkyReport (http://www.skyreport.com/skyreport/dec2002/120902.shtm#four) (Used with Permission)
According to the Financial Times, the shake-up going on at Vivendi will see the French/Hollywood media giant convert its stock in EchoStar - acquired for $1.5 billion - into ordinary shares in the satellite TV company. The move would help Vivendi retreat from the global media ambitions it had under Jean-Marie Messier, the former Vivendi chief who remains on EchoStar's board.
Under its EchoStar deal, Vivendi could only convert its Class D preference stock in EchoStar into Class A common shares following the completion or termination of the DirecTV merger. Earlier this week, EchoStar and DirecTV abandoned the deal.
In response, EchoStar pointed to the statement it released in November concerning the Vivendi stake: Since the Vivendi contingent value rights cannot be exercised for 30 months, they will not result in any payment by EchoStar until 2005 at the earliest, and it's possible that no payment will ever be required, the satellite TV company said.
From SkyReport (http://www.skyreport.com/skyreport/dec2002/120902.shtm#four) (Used with Permission)