Vivendi says asset disposal plan is in place
By Emily Church, CBS.MarketWatch.com
Last Update: 9:20 AM ET Nov. 26, 2002
LONDON (CBS.MW) - Shares of Vivendi Universal rose 4 percent on Tuesday after the French-U.S. media group posted a $1.1 billion loss for the third quarter, but told investors its asset sales plan remains on track.
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Vivendi's (V: news, chart, profile) 1.2 billion euro net loss for the quarter widened from a 906 million euro loss in the year-ago period. The loss was largely driven by the costs after selling U.S. publishing business Houghton Mifflin and Italian pay-TV unit Telepiu.
Vivendi said operating profit in the quarter rose 25 percent to 1.2 billion euro, lower than some estimates from the analysts for operating profits of around 1.4 billion euro.
Shares (FR:012777: news, chart, profile) in Paris rose 4.2 percent at 15.4 euros. The stock has been surging as speculation rises over potential bids for some of its assets.
Vivendi is selling some assets to bring down its debt load. Chairman and Chief Executive Jean-Rene Fourtou said in a statement on Tuesday that the company remains "confident that we will have sold assets worth approximately E7 billion by year-end 2002.
"We are in the process of finalizing a credit facility that will give the company even greater financial flexibility," he said.
Emily Church is London bureau chief of CBS.MarketWatch.com.
