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Vivendi sets deadline for bids
PARIS, France (CNN) -- Vivendi Universal, the world's second-largest media company, managed to slash it losses as it prepares to sell U.S. assets. The company made a first-quarter loss of 319 million euros ($380 million) from 815 million in the same period a year ago, it said on Tuesday. Vivendi said its "adjusted" net loss fell to 56 million euros from 182 million euros. Jean-Rene Fourtou, chief executive of Vivendi Universal (PEX), has made it clear he plans to sell the assets -- which include Universal Studios, Universal Music and the USA and Sci-Fi cable channels -- to slash its debt mountain. Vivendi shares closed 1.5 percent lower at 17.01 euros Tuesday in Paris. The company's exit from the U.S. entertainment business marks a dramatic reversal of the strategy pursued by former chief Jean-Marie Messier, who transformed the water company into an entertainment giant to rival AOL Time Warner (AOL), the parent of CNN. Edgar Bronfman Jr. has said he is interested in buying back the U.S. entertainment assets his family sold to Messier for $34 billion three years ago. Bronfman is expected to be joined by private equity firms Blackstone and Thomas H. Lee, cable operator Cablevision Systems Corp. and a syndicate led by Wachovia Corp., Reuters said. Vivendi has set a June 23 deadline for bids for its U.S. entertainment assets, "We are not wasting any time and proceeding speedily," Vivendi Chief Financial Officer Jacques Espinasse told an analyst presentation in Paris. "Some investors are interested in the whole thing including music, and some are only interested in VUE (Vivendi Universal Entertainment) or part of VUE." Analysts and investors, who are keen for Vivendi to sell those assets to reduce debt and restore profitability after last year's record French loss of 23.3 billion euro, will seek more clarification when they meet Fourtou. Its net debt stood at 15.3 billion euros at end-March. As of May 31, estimated net debt was 14 billion, it said. The company has held talks with both oil billionaire Marvin Davis and U.S. media giant Viacom over the U.S. assets. John Malone, chairman of Liberty Media (L), has also expressed an interest in the business. Vivendi had already published first-quarter sales of 6.23 billion euros, down four percent on the year. The company aims to make a net profit before goodwill and exceptional items in 2003 and show strong growth in operating income and operating cashflow.
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