Comcast lower on talk of bid for NBC share

Comcast Corp. stock was trading sharply lower today on the news that the company was in talks to acquire a stake in NBC Universal Inc.

Comcast shares were down 6.34 percent ($1.07) to $15.81, apparently on fears that the deal would load up the company with debt or dilute its stock.

The Philadelphia-based cable giant, which has about 24 million cable TV customers, has confirmed that it's looking for entertainment content and published reports say it could be negotiating for a 20 percent to 50 percent stake in NBC Universal.

NBC Universal, which is 80 percent owned by General Electric, controls the NBC broadcast network, MSNBC, CNBC, Telemundo, USA, Bravo, Universal Pictures, and theme parks. It has been considered in play for several years.

Comcast Corp. had denied reports last night that it had reached a deal to buy NBC Universal for $35 billion.

Comcast owns regional sports networks, the E! entertainment channel, the Versus national sports network, and the Golf Channel, among others.

Partly fueling the talk have been comments by the chief executive of Vivendi, a French conglomerate, which owns the other 20 percent stake in NBC Universal. Chief executive Jean-Bernard Levy has said that he plans eventually to sell the NBC Universal holding.

Each year, Vivendi is allowed to exercise an option to sell that stake, either in the public market or to GE, and that option opens up every November.

Representatives from all the parties have declined to comment.

GE was down 32 cents (1.95 percent) to $16.10 soon after trading opened.