Vivendi, the French utilities and media conglomerate, said last night that merger talks with its pay-TV unit Canal Plus and Canada's Seagram were in their final stage. A deal which would create a $100 billion (£82 billion) media giant called Vivendi Universal could be announced as early as tomorrow.

The group said in a statement that the three companies would hold individual board meetings today but made it clear that none of them would make any comment before a possible news conference tomorrow. "The negotiations initiated by Vivendi with Seagram and Canal Plus, which could result in an alliance of the three firms, have now entered their final stage," the statement said.

"In the event of a conclusion to these discussions, a news conference, in the presence of (Seagram chief executive) Mr Edgar Bronfman could take place on Tuesday. . . in Paris). Until then, the three groups will refuse any comment," it said.

The three groups are expected to announce their merger into a global media giant called Vivendi Universal, with turnover of some $65 billion and a market capitalisation of $100 billion.

The operation is expected to be an all-share offer by Vivendi, worth around $33 billion, for Seagram stock. To avoid being saddled with Seagram's $7 billion of debt, analysts expect the deal will involve Vivendi selling off Seagram's drinks business, estimated to be worth $67 billion.

Yesterday's statement confirmed newspaper reports that Vivendi directors would hold a preliminary working meeting last night ahead of a board meeting today to finalise its marriage with the Canadian drinks and entertainment giant.

Canal Plus, 49 per cent owned by Vivendi, confirmed it would hold its own board meeting today.

Seagram's board of directors also met last night and will meet again this afternoon in the United States.

Vivendi Universal, expected to be based in Paris, could be up and running in October or November as the French group is keen to move swiftly in order to reassure investors of the wisdom of the move.

One issue that might stall the conclusion of the merger talks could be bartering over how big a slice each company would get in the new media powerhouse.

It is reported that Vivendi shareholders would have 59 per cent of the new group, Canal Plus shareholders would get 12 per cent, and Seagram shareholders 29 per cent.

Seagram said that it would control five of 18 board seats while the Bronfman family, who control Seagram, would be the largest individual shareholder, with an 8 per cent stake.