By JAMES L. GRAFF AND NINA PLANCK

BRONFMAN SINGS A DIFFERENT TUNE

Since Edgar Bronfman Jr. decided in 1995 that Seagram should switch its focus to movies and music, analysts and journalists who cover the firm have second-guessed his every move. The would-be impresario has thus far failed to turn around Universal Studios, for which he paid $5.7 billion. And shareholders of Seagram, the family-controlled but publicly-held liquor company, have been none too pleased by the performance of the stock, which has lagged far behind the rest of the market. But last week, the 42-year-old part-time songwriter--his credits include Celine Dion's current single To Love You More--came up with a composition almost everyone seems to like: the $10.6 billion acquisition of music giant PolyGram from its majority shareholder, the Dutch firm Royal Philips Electronics. The deal means that Seagram, which also owns Universal's MCA record label, will become the world's largest music company, with a stable of megastars ranging from Elton John and Luciano Pavarotti to Reba McEntire and George Strait. To help pay for the deal, Bronfman will spin off Seagram's Tropicana Products fresh juice business in a stock offering which could raise $4 billion. He is also reportedly ready to sell PolyGram's well-respected movie arm. Seagram's stock jumped at the news, but Bronfman's critics will be ready to pounce if he stumbles again.

A TRUCE IN A TRANSATLANTIC TUSSLE

The U.S. and the E.U. agreed to an armistice of sorts in their long-simmering dispute over U.S. sanctions against companies and countries doing business in Iran, Libya and Cuba. In exchange for E.U. promises to step up export controls on weapons and deepen cooperation with the U.S. in fighting terrorism, President Bill Clinton waived sanctions against European firms investing in Iran. The most immediate benefactor is the French petroleum company Total, the lead partner in a $2 billion deal to develop an offshore Iranian natural gas field along with Gazprom of Russia and Petronas of Malaysia. At a brief U.S.-E.U. summit in London, Clinton also agreed to seek a permanent change to a law that denies U.S. visas to officials of firms that invest in property expropriated by Cuba. The E.U. agreed to stiffen its efforts to discourage such investment. Said a triumphant Sir Leon Brittan, the E.U.'s chief trade negotiator: "We've been able to lance the boil of sanctions while advancing the transatlantic partnership." But the U.S. Congress might not see it that way. The Cuba legislation bears the names of Senator Jesse Helms and Representative Dan Burton, two of Clinton's most vociferous foes. The Iran sanctions were sponsored by Senator Alfonse D'Amato, who has already termed the deal "a mistake" that "will send a signal to others that they can do business as usual with Iran." Which is precisely what European firms would like to be free to do.

CHRISTIE'S GOES TO THE HIGHEST BIDDER

It will be a spectacular addition to his already impressive collection. French multimillionaire Francois Pinault--a top retailer, connoisseur of modern art and friend of President Jacques Chirac--seems certain to pay $1.1 billion for Christie's International, the venerable British auction house, taking it private for the first time since 1973. Pinault's holding company, Artemis, bought 29% of Christie's last month, making it the auctioneer's major stakeholder. His offer for the rest of the firm, accepted by the board, easily outstripped a bid from Swiss Bank SBC Warburg last December. His bid of $2.42 per share was 26% higher than the stock's previous closing price. Pinault's $17 billion empire includes Chateau Latour, a top Bordeaux vineyard, Samsonite luggage, the Vail ski resort in Colorado, the center-right magazine Le Point and 42% of Pinault Printemps Redoute, a giant retail group which controls book, music and clothing chains. After trailing U.S. rival Sotheby's in sales of art works for 43 years, Christie's finally moved into first place in 1996. But operating costs are still too high and the blue-blood auction house--founded in 1776--wants to expand into real estate and financial services, where Sotheby's already has a presence. Still, the firm's focus will remain on art sales, and when France's art market gets a boost from a planned reduction in the VAT, the French-owned Christie's should be well-positioned. But competition will be stiff. Sotheby's is planning its first auction in France for September 1998; Christie's will follow in January 1999. Going, going, gone.