Vivendi explored other alternatives to extract cash from its Activision Blizzard unit. This was after it failed to sell part of its 61% stake in the US video games business. This was reported by the Financial Times last Sunday on its website.
Vivendi offered Activision several options during their discussions. This included offering a part of its holding funded by cash on its balance sheet or through a debt offering. The Financial Times said on its report citing sources that were familiar with the discussions.
Talks over a possible cash payout came at a crucial time. This was after Vivendi gained new powers to force payment of sizeable dividend from Activision on Tuesday added the newspaper.
Vivendi was required to secure the support of Activision's independent directors. This was according to the current rules that added the division's net debt should be above US$400 million to be able to make any dividend payment.
However, the said rules were to expire on Tuesday. This would make Vivendi to be able to gear u Activision's balance sheet and force payout of a special dividend without independent approval from its directors.
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