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Stock Analyst Update

Stick to Scotch and Water on the Rocks

Seagram, utility Vivendi are tempting investors again.

Seagram's (VO) shares jumped more than 13% Wednesday to about $60 per share after the beverage and entertainment company confirmed that it was again in merger talks with two French companies, one of them a water utility.

That price, however, is still 20% below the rumored offer of $75 per share from Vivendi (VVDIY) and its 49% owned TV unit, Canal Plus (CNPLY), and there are at least two reasons why.