Vivendi Closes On EchoStar Investment1/27/2002 7:00 PM Eastern
Vivendi Universal S.A. announced last week that it has closed its $1.5 billion investment in EchoStar Communications Corp. The deal, first announced in December, recently received Federal Trade Commission approval.
According to a press release, Vivendi received 5.8 million shares of Echostar Class D perferred stock at $260.40 per share, giving Vivendi a 10 percent stake in the direct-broadcast satellite service provider. EchoStar will use the proceeds to help finance its pending acquisition of Hughes Electronics Corp., parent of DirecTV Inc.
Each Class D share converts into 10 shares of EchoStar Class A common stock, with equivalent voting and economic rights. Vivendi said that once that merger is closed, it would have a less than 5 percent interest in the combined Hughes-EchoStar.
Vivendi chairman Jean-Marie Messier also received a seat on EchoStar's board of directors.