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Usually the way this works is that you'd get a new stock -- shares of the acquiring company at a conversion rate based on the shares of Vivendi you hold -- and also of course retain your old stock, usually at a modified share price. It all works out to even at the beginning, of course, so following any premium that V shareholders get paid for their entertainment subsidiary, there is no special value loss or gain on that initial distribution. Of course, how those two stocks then do from that point forward is what matters.

Hope that was clear.

Fool on!

David Gardner
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