Canal Plus shareholders will receive two Vivendi shares for each Canal Plus share held.

In Paris trading yesterday, Vivendi shares closed down 1.5 percent, at 17.01 euros.

And in Europe, Vivendi shares have dropped roughly 27 percent since rumors of the deal first circulated.

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.

Vivendi shares traded in Paris closed down 1.87 percent, or 23 cents, to 12.07 euros ($12.04).

In New York trading, Vivendi shares closed at $12.05, down 43 cents.

But the announcement came after the close of the Paris stock market, where Vivendi shares fell again today, down 4.6 percent.

Vivendi recently completed the sale of a bond that will be convertible into Vivendi shares, raising an additional one billion euros.

Vivendi shares were little changed in Paris.

In Paris, investors drove up Vivendi shares by almost 2 percent, to close at 11.39 euros ($11.43).