RFC Headers: From: Hasak, Reuven To: Peled, Abe Date: 3/20/2000 1:43:54 PM Subject: FW: ----------------------------- Abe Shalom Here is a report from Ray re Canal+ etc. The issue for you is the COJYP SA which Ray mentioned while meeting you a week ago or so. I talked to Ray, and I assume he'll try to get hold of you and give you more details. In case you find interest in the COJYP story, we can be of help but somebody else should take the lead; In case you have no interest, we should ignore it and stop persuing ; it is up to you---please let us know. Toda Reuven -----Original Message----- From: Adams, Ray Sent: Sunday, March 19, 2000 10:43 To: Hasak, Reuven Subject: Reuven The situation with Canal + and the technical provider seems a very strange story. I had a long meeting with the informant and he explained a lot of detail. Basically the story is that about a year ago the president of Canal + had e meeting and negotiation with Rupert Murdoch. The bottom line is that the President of Canal + showed RM the door and said no deal. Sine then CANAL+ have undergone some major changes. They are also in partnership with Vivendi. Some disputes are arising from the way the company is run and is viewed. Canal+ see themselves as a broadcaster and Vivendi see the whole operation as a business. This has lead to some tension and it is considered that the day of the long knives is not too far away. It is considered that the head of Canal + will depart. Two of his failings are that he did not head off the current hack and now that they have it he seems powerless to do anything about it. He is in bed with Roger Kinsburg (head of Rendezvous - Porno) and using his contacts to try to find a solution to the hack. They at first used Hannibal who is now named in a major law suit by John Norris and myself. Also their operation to have the pirate cards read lead then straight back to the Russian mob of which Hannibal is a part. So they all have red faces. This made them seek out and approach Alex and ask him for his assistance. This after they spent a lot of money investigating him. So they do not appear too professional in this area. They have offered Alex FF10,000,000 to assist them with other promises. The other major promise centers upon the fact that SECA will shortly cease to exist it will become Canal + Technologies and will be part of a major float on the stock exchange in September. They have promised Alex a large right to buy under the IPO and also will make available to him a major Share Option holding. This shows how desperate they are to rid themselves of the hack. Alex could do all this for them. He could make them hack-free. The other even more major matter is that Canal+ do not own their operating technology MEDIA HIGHWAY and NEDIA GUARD. This was developed by a small company COJYP SA. The lawyer for this company states that Canal + stole the technology and are using it without authority. Cojyp is demanding 300,000,000 FF in compensation. Canal + responded with an offer estimated at between 20 - 50 million. A major court case could be looming. The situation is that the float of the new company is no in serious jeopardy and Canal + seem impotent to resolve either of the two major issues. If they try to go to market whilst they still have a hack - which will be well over a year old by then and couple that with the fact that they do not own their broadcast technology then they will sink. They will have to cancel. Alex is very central to all this and introduced me to the informant. The informant is well placed to assist in negotiations as he knows all the players. He of course has his own agenda Alex can deliver whatever we want here. He could equally assist Canal + and solve their hack. People keep telling me that this is a Major (Golden) opportunity for News Corp. I am told a convincing story and strategies and tactics are outlined which coupled with an inside source (courtesy of Alex) could be instrumental in a deal. I have a lot more detail and I have access to the source. I outlined most of this to Gorm although he is not aware of my Friday evening meeting with the informant. I would like your permission to approach Abe direct and or your advice as to how I should proceed. Business ventures are outside my remit although on this occasion most of the information and influence is with Alex and myself. I will be speaking with the informant again very late tonight so I will not bother you more. I am presenting to an NDS group on Piracy Monday Morning near Heathrow so I could be free to see Abe after that. I must say that my instincts are that we have something here and should at least allow Abe the opportunity to brief News Corp. Ray