Vivendi to sell AOL France stake for $700 million - Mar. 5, 2001

News > International

Vivendi to sell AOL stake

March 5, 2001: 8:48 a.m. ET

AOL Time Warner to buy Vivendi stake in AOL France for $700 million

LONDON (CNN) - Vivendi Universal, the world's No. 2 media company, is close to selling its sake in AOL France for $700 million, a source told CNN on Monday.

AOL Time Warner (AOL: Research, Estimates), the parent of CNN.com, plans to buy Vivendi's 55 percent stake in AOL France, after talks to swap the holding for a share of AOL Europe fell apart last year.

"The agreement is waiting to be signed," a person familiar with the deal said. "The numbers flying around ($700 million) in various reports are close to the mark."

Jean-Marie Messier, Vivendi's chief executive, said on Thursday the sale could take place in the next few days or even hours and generate a "significant" capital gain.

"It's a question of days and not weeks and maybe even hours rather than days," Messier said. "The finalisation of the accord by lawyers is in its final stages."

A source told Reuters that shareholders in Vivendi Universal's telecoms arm Cegetel, which owns part of the stake, must however rubber-stamp the agreement before it can be made public.

Vivendi, which together with its Canal Plus pay-TV unit owns 55 percent in AOL France, has spent around

150 in the Internet service provider as it took on board its start-up losses.

Vivendi spokesman Antoine Lefort declined to comment on speculation, while AOL Europe's Andrei Bogolubov said "no agreement" had been reached.

Shares in Vivendi (PEX) slipped

0.5, or 0.75 percent, to

66.50 in midday trade in Paris.

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