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Seagram stox sale sets a share price

Offering expected to net $2.3 billion

NEW YORK — The Seagram Co. said Wednesday its previously announced offering of 37 million shares, including 8 million from the trusts of Seagram co-chairman Charles R. Bronfman and his family, had been priced at $50.13 a share.

The 29 million shares being offered by Seagram are expected to net $2.3 billion, which the company said would be used to reduce debt and for general purposes.

A little over a year ago, Seagram acquired music giant Polygram from Philips Electronics in a $10.6 billion cash-and-stock deal, converting itself in the process from mostly a beverage business into predominately an entertainment company.

Entertaining other ideas

Charles R. Bronfman, who was known to have been less than enamored of the transformation orchestrated by his nephew and current Seagram president and CEO Edgar Bronfman Jr., has stated his family would use its proceeds for financial and estate planning purposes.

On announcing the secondary offering last month, however, Charles R. Bronfman claimed to be “very supportive of the company’s leadership, its strategic direction and performance.”

Seagram also announced it would offer the public 18.5 million convertible securities paying 7.5% at $50.13 per unit.

Both offerings, coordinated by Goldman, Sachs & Co., are expected to close on June 2.

Seagram stock closed unchanged Wednesday at $50.12 a share.