Vivendi 'to sell' AOL stake

The French media group Vivendi Universal reportedly plans to sell its stake in AOL France back to AOL Time Warner for $700m (748.4m euros).

Any deal would need to be approved by shareholders in Vivendi's telecom arm, Cegetel, which owns part of Vivendi's 55% stake in AOL France.

Vivendi agreed to buy the 55% stake in AOL France in June 1998. France's Canal Plus also owns part of the stake.

According to the Financial Times newspaper, shareholders in Cegetel circulated information about the proposal sale.

Vivendi Universal is the result of last year's merger between Seagram, Canal Plus and Vivendi.

Sale expected

The disposal of AOL France has been expected since the news last year of Vivendi's $34bn merger with the Canadian media group, Seagram.

Vivendi owns 44% of Cegetel. Other shareholders in the telecom subsidiary include the UK's Vodafone and BT, as well as the US company SBC Communications.

Jean-Marie Messier, chief executive of Vivendi Universal, has declined to comment on the sale.

AOL Time Warner said: "There is no deal to announce at this time".

Vivendi had wanted to swap its stake in AOL France for one in AOL Europe, but talks fell apart last year.

Mr Messier has transformed Vivendi from a French utilities company into an international media group.