Ubisoft shares soar on talk of Vivendi tie-up

5th January 2005, Comments 0 comments

PARIS, Jan 5 (AFP) - Shares in Ubisoft Entertainment soared Wednesday after a report in French financial newspaper L'Agefi said the company had held preliminary talks about a potential tie-up with Vivendi Universal, following Electronic Arts' acquisition of a 20 percent stake in Ubisoft, dealers said.

PARIS, Jan 5 (AFP) - Shares in Ubisoft Entertainment soared Wednesday after a report in French financial newspaper L'Agefi said the company had held preliminary talks about a potential tie-up with Vivendi Universal, following Electronic Arts' acquisition of a 20 percent stake in Ubisoft, dealers said.

Ubisoft shares shot up 9.68 percent to EUR 27.20 in morning Paris trade, while Vivendi Universal shares slipped 0.77 percent lower to EUR 24.36.

The CAC-40 index was down 0.69 percent at 3,836.84 points.

The French media giant began preliminary tie-up talks with Ubisoft after the US company Electronic Arts announced on December 21 it had acquired 19.9 percent of Ubisoft, the report said, citing a "well-informed source." Ubisoft considered the move hostile.

Vivendi Universal could act as a "white knight" in case of a takeover bid for Ubisoft by Electronic Arts, the report said.

A combination of Vivendi and Ubisoft would create the world's second-largest video game company, with sales of over USD 1 billion (EUR 755.1 million).

© AFP

Subject: French News

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