blue
05-16-2003, 01:27 PM
Vivendi shares push higher on U.S. auction hopes
Friday May 16, 4:50 AM EDT
LONDON, May 16 (Reuters) - Vivendi Universal (EAUG) shares forged ahead on Friday, as hopes for the sale of the media giant's U.S. entertainment business mounted after cable magnate John Malone confirmed his interest in the assets.
Malone, chairman of Liberty Media Corp. (L), told investors that Vivendi's Universal Studios and cable TV channel USA Network would make a good fit with his cable and communications company, but he stopped short of saying he would make a bid.
"Recent first-quarter sales figures showed that the performance of Vivendi's U.S. media assets was clearly not good, so a sale would be positive news in terms of debt reduction," said a trader at one French brokerage. "We value VUE at 12.8 billion euros ($14.6 billion)."
Vivendi shares were four percent up at 14.35 euros at 0820 GMT, just off an earlier high of 14.45 euros. By comparison, the pan-European DJ Stoxx media index was up two percent.
"The statement by Liberty Media's chairman...has refocused investors' attention on the stock this morning," said one dealer at a French bank.
Traders said suggestions that a sale of Vivendi's computer games unit could be wrapped up by the summer were also positive. Sources familiar with the situation told Reuters on Thursday that a games deal could be concluded this summer.
Vivendi chief Jean Rene Fourtou last month earmarked the U.S. entertainment assets and computer games division for sale as part of a strategy to focus on the telecoms business.
The list of potential bidders for the U.S. arm Vivendi Universal Entertainment (VUE) so far include U.S. media giant Viacom (VIAb) and oil billionaire Marvin Davis.
Liberty Media has also for long been rumoured to be a potential bidder. However, big question mark still remains over the intentions of Barry Diller, who used to run VUE.
Friday May 16, 4:50 AM EDT
LONDON, May 16 (Reuters) - Vivendi Universal (EAUG) shares forged ahead on Friday, as hopes for the sale of the media giant's U.S. entertainment business mounted after cable magnate John Malone confirmed his interest in the assets.
Malone, chairman of Liberty Media Corp. (L), told investors that Vivendi's Universal Studios and cable TV channel USA Network would make a good fit with his cable and communications company, but he stopped short of saying he would make a bid.
"Recent first-quarter sales figures showed that the performance of Vivendi's U.S. media assets was clearly not good, so a sale would be positive news in terms of debt reduction," said a trader at one French brokerage. "We value VUE at 12.8 billion euros ($14.6 billion)."
Vivendi shares were four percent up at 14.35 euros at 0820 GMT, just off an earlier high of 14.45 euros. By comparison, the pan-European DJ Stoxx media index was up two percent.
"The statement by Liberty Media's chairman...has refocused investors' attention on the stock this morning," said one dealer at a French bank.
Traders said suggestions that a sale of Vivendi's computer games unit could be wrapped up by the summer were also positive. Sources familiar with the situation told Reuters on Thursday that a games deal could be concluded this summer.
Vivendi chief Jean Rene Fourtou last month earmarked the U.S. entertainment assets and computer games division for sale as part of a strategy to focus on the telecoms business.
The list of potential bidders for the U.S. arm Vivendi Universal Entertainment (VUE) so far include U.S. media giant Viacom (VIAb) and oil billionaire Marvin Davis.
Liberty Media has also for long been rumoured to be a potential bidder. However, big question mark still remains over the intentions of Barry Diller, who used to run VUE.