Vivendi wants to sell one of Hollywood's biggest names

Comcast, the biggest cable TV group in the United States, gave no reason for its decision to withdraw from the auction, which it announced in a two-line statement on its website.

Vivendi is trying to sell Vivendi Universal, which owns some of Hollywood's best known film and music companies, in an effort to cut its own debts.

Last month, Hollywood studio Metro-Goldwyn-Mayer (MGM) said it was no longer interested in buying Vivendi Universal because it was not worth the price Vivendi was asking.

Price sticking point

Vivendi is thought to be sticking to a price of $14bn for Vivendi Universal. MGM had offered to pay $11.5bn in cash.

Comcast's withdrawal makes it less likely that Vivendi will get the price it is looking for.

The US entertainment business includes Universal film studios - which made this summer's blockbuster movie The Hulk - TV studios and theme parks.

Vivendi chief executive Jean Rene Fourtou has made selling the US entertainment business a central part of his drive to cut the struggling French group's debts.

Shrinking shortlist

Vivendi said in June that it had a short-list of six potential buyers for Vivendi Universal.

That shortlist has now shrunk to former Universal owner Edgar Bronfman, General Electric, Liberty Media and US media group Viacom.

Comcast's withdrawal leaves General Electric's US TV network NBC as the mostly likely winner, analysts believe.

Vivendi's shares slipped 2.4% in New York after Comcast's news, and were 1.4% lower in Paris.