Vivendi selling 55% AOL France
  03/23/2001 9:10:39 AM MST Albuquerque, Nm
  By Dustin D. Brand; Owner AMO

As we reported earlier, now confirmed, Vivendi is selling their 55% AOL France stake back to AOL.   FROM LONDON - America Online (AOL.N) said today it had agreed to take 55 percent of AOL France, owned by two units of French media conglomerate Vivendi Universal (V) (V.N), in exchange for preferred shares in AOL Europe.

  The preferred shares, said to be valued at $725 million and representing an undisclosed minority stake in AOL Europe, will be entitled to a six percent annual return until April 2003 when they will be redeemed by AOL with cash or AOL Time (AOL) Warner stock.

  The preferred shares can also be swapped for publicly traded AOL Europe common stock, provided the European unit of AOL Time Warner then has a listing.

  "We bought a gem in a buyers market," one AOL official told Reuters.

  AOL France, which was set up in March 1996 and which has close to one million subscribers, is 55 percent owned by Vivendi units Cegetel and Canal Plus.

  AOL Europe is currently 50 percent owned by AOL. The other half is owned by Germany's publishing company Bertelsmann (BTGGga.F) which will exit the company within two years in the wake of the merger of AOL and Time Warner.

  Bertelsmann is the same company teamed up with Shawn Fanning and his illegal music service.

  Related AMO Articles:
   Vivendi may sell its AOL Stake 03/05/2001 8:57:59 PM MT
   Vivendi may license it's Music Catalog 03/05/2001 9:05:05 PM MT