BUZZ-UMG jumps to 6-month high on new Spotify deal

** Shares in UMG UMG.AS jump as much as 7.6% to a six-month high after the world's biggest music label announced a new agreement with audio-streaming giant Spotify SPOT.N

** They are trading 4.6% higher by 0928 GMT

** The new multi-year deal in Recorded Music and Music Publishing establishes a direct license between Spotify and UMG across Spotify's portfolio

** Exact terms were not disclosed

** "Spotify's price increases last year did not benefit UMG ... It appears that this deal now provides UMG with a different economic treatment for both music and non-music content," ING says in a note

** "It is rumoured that this deal removes the mechanical royalty bundle discount for Universal Music Publishing Group," ING adds, saying this should increase the payout for the group

** Shares of Vivendi VIV.PA, UMG's third biggest shareholder, gain 3% and are at the top of France's CAC 40 index .FCHI

** UMG shares are set for their best day since August if the gains hold; it trades at the top of Amsterdam's AEX index .AEX