Here is the complete story according to FT:

Comcast, the big US cable operator, has decided not bid for Vivendi's American entertainment assets, dealing a further blow to the embattled French group's attempts to reduce its debts. 

After studying financial information for several weeks, Comcast executives decided not to submit a formal offer following an all-day meeting on Wednesday, people familiar with the matter said.

Comcast's withdrawal is a setback for Vivendi, which had hoped the cable group would liven up the lacklustre auction of its US film and television assets - the legacy of a debt-fuelled buying spree engineered by Jean-Marie Messier, former chief executive.

Several bidders have already pulled out in response to the French group's demands of $14bn for Vivendi Universal Entertainment, the holding company for its film studio, theme parks, television production business and cable channels.

Comcast's decision leaves NBC, the broadcasting arm of General Electric, as the clear front runner in the auction for VUE, according to officials involved.

NBC has proposed a partnership which would combine its US media assets with VUE, leaving the French group with a minority stake in the venture. However, NBC's proposal does not involve any cash payment to Vivendi.

"Very clearly NBC is in the lead even though there not really any cash in their deal," according to one person close to Vivendi Universal, the French parent of VUE.

A consortium led by Edgar Bronfman, the former Seagram chief executive, is also still taking part in the auction. However Vivendi is less inclined to accept Mr Bronfman's offer, which is complex, involves a lot of debt, and does not meet the French group's valuation demands.

Vivendi executives have indicated that if the offers are not sufficient, they are prepared to press ahead with an initial public offering of the assets - comprising VUE and its music and games subsidiaries - early next year.

But an IPO would have several drawbacks. It would attract a lower valuation, and Vivendi would probably have to retain a larger stake in the business. What's more, Vivendi would have to hire a chief executive to run the businesses.

Comcast expressed an interest in the Vivendi assets late last month following the sale of its majority stake in QVC, the home shopping channel, for $7.9bn.

Vivendi has already ruled out a bid by a consortium led by Marvin Davis, the oil billionaire. Metro-Goldwyn-Mayer, the Hollywood studio group, and Liberty Media, the investment group run by John Malone, have also withdrawn.

Vivendi must sell all or part of VUE to meet its self-imposed target of raising EU7bn ($8bn) from disposals this year. However, the company has staved off any liquidity issues by agreeing a new EU2.5bn credit facility and more than EU2bn of high-yield offerings in recent months.

Earlier this week, the company also secured bondholder approval to relinquish early redemption rights on a separate EU527m exchangeable bond.

Following that transaction - agreed in return for a higher eventual redemption price in 2006 - the company said it could meet its 2004 cash commitments "no matter which decisions are taken shortly on the full or partial disposal of Vivendi Universal Entertainment".

By early afternoon in New York, Vivendi shares were down 2 cents at $17.24. Comcast's class A shares were down 9 cents at $29.65.