Vivendi discusses Scoot takeover

Scoot: "No assurance that an offer will be forthcoming"

Vivendi Universal, the French media and utilities group, has said it is in talks with Scoot.com about making an offer for the UK-based online directory business.

Scoot shares jumped 47% to 16.5 pence following an earlier announcement by the takeover target, having already climbed 32% in the past two days as rumours of a sale grew.

Late on Friday afternoon, however, the company's board rejected the offer, describing it as ""wholly inadequate" and not reflecting the underlying value of the company.

Vivendi said any offer it made would not exceed 15p a share.

Bubble burst

Last month, UK-based Scoot said it was conducting a strategic review of its business which would include an assessment over how to maximise shareholder value.

Scoot shares hit a high of 351.5p in March 2000 but fell sharply throughout the rest of last year in line with the bursting of the tech stock bubble worldwide.

Last September, Vivendi was reported to be considering paying 300p a share for the 77.6% of Scoot it did not already own.

But no offer emerged.

Scoot - which aims to earn commission by referring users to businesses - had said it aimed to break even some time this year.

Over the weekend, newspaper reports suggested that Scoot's management was pondering a break-up of the company, possibly selling off its lucrative subsidary Loot, an advertising magazine.