Vivendi is exploring alternative moves to extract cash from its Activision Blizzard unit after failing to sell part of its 61-percent stake in the U.S. video games business, the Financial Times reported on its website on Sunday. One of the options Vivendi has explored during discussions with Activision includes a tender offer by the U.S. company for part of this holding funded by cash on its balance sheet or through a debt offering, the newspaper said citing people familiar with the talks.Discussions over a possible cash payout come at a crucial time because from Tuesday Vivendi gains new powers to force the payment of a sizeable dividend from Activision, the newspaper added.Current rules require Vivendi to secure the support of Activision's independent directors ahead of any dividend payment that takes the division's net debt above $400 million.But as these rules expire on Tuesday, Vivendi would be able to gear up Activision's balance sheet and force the payout of a special dividend without the approval of independent directors.
Activision, Inc. (Activision Blizzard) is a worldwide publisher of online, personal computer (PC), console, handheld, and mobile interactive entertainment products. Shares of ATVI traded higher by 2.09% or $0.3/share to $14.66. In the past year, the shares have traded as low as $10.45 and as high as $16.11. On average, 7482180 shares of ATVI exchange hands on a given day and today's volume is recorded at 2709143.
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