Seagram shares rose 12.5 cents, to $39.9375.

Seagram shares are trading well below the premium Vivendi has agreed to pay.

Under the terms of the deal, each Seagram share would be exchanged for 0.8 Vivendi share - assuming Vivendi's stock remains below $96.69.

Seagram shares rose $3.75 yesterday, to $44.75.

But the market reaction to the deal - Seagram shares fell 18 percent last week - may be a better gauge of how the company will do.

Seagram shares fell $2.75, or more than 4 percent, to $54 on the New York Stock Exchange.

Since word of the merger emerged, Seagram shares have risen 17.7 percent, closing at $59.5625 yesterday.

That person also said Du Pont would not pay a premium above market price for the Seagram shares.

Seagram shares fell 12.5 cents, to $35.625, on the New York Stock Exchange.

With about 23 percent of Seagram shares in the family's hands, the sale of the company would leave them with $7 billion.