Quantcast
VU SHARES ON DOWNWARD SPIRAL
Plan to Sell Water Unit Causes Stock to Drop

Vivendi Universal's shares hit their lowest level in more than five years Friday after Deutsche Bank disclosed a complex stock repurchase plan with the company.

VU sold 12.7% of its water utility, Vivendi Environnement, to Deutsche Bank on June 12 on the condition the entertainment giant buy back the shares at a later date. Such stock repurchase agreements allow companies to raise cash by borrowing money against the value of their shares. Vivendi said Friday it was getting financing at a favorable rate, the Los Angeles Times reports..

The unusual transaction fueled speculation among some investors and analysts over whether VU was facing a cash squeeze.

Investors also wondered whether the arrangement would delay plans, approved by VU’'s board on Monday, to sell 15% of Vivendi Environnement to reduce the parent company's $30 billion debt load.

Vivendi wouldn't say how much it raised from the sale.

The company did say it still has 3.3 billion euros in available credit from banks.

VU's shares on the Paris Bourse fell 8% to their lowest level since September 1996. On the New York Stock Exchange, Vivendi's receipts fell $2.11 to $23.21. Vivendi's shares have fallen 57% on the NYSE this year.

JOHN PRINE HAD
A CANDY HEART
Brilliance illuminated (4/8a)
YOUR TOP 20: WEEKND VS. WAVE
Deja vu all over again? (4/8a)
NIPPER COLLARS ROTHSCHILD FOR PROMO TEAM
Tails are wagging at the news. (4/8a)
A MESSAGE FROM
SIR LUCIAN
Hallelujah (4/7a)
MAYBE, JUST MAYBE, PART 5: EVERYBODY’S WORKING FOR
THE WEEKEND
More werds of whizdom from our Editur in Cheef (4/6a)
WE FOUND SOME TOILET PAPER
Also known as back issues of HITS.
SOCIAL DISTANCING
We turn out to be pioneers.
STREAMING STORIES
The music doc shows new muscle.
ELECTION 2020
Not postponed yet.
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)