Vivendi Environnement stock backs new Vivendi Universal bonds

Vivendi Universal has issued 32.35 million bonds exchangeable for Vivendi Environnement stock on a 1-for-1 basis, the company reported.

PARIS, France, Feb. 9, 2001 -- Vivendi Universal has issued 32.35 million bonds exchangeable for Vivendi Environnement stock on a 1-for-1 basis, the company reported. The bonds correspond to 9.3 percent of the capital stock of Vivendi Environnement, and have a total value of approximately $1.7 billion. The issue price was $51.34.

The securities were placed with institutional investors. The issue was oversubscribed five times in three hours and had no adverse effect on trading of Vivendi Environnement stock, Vivendi Universal said.

Vivendi Universal acquired the 9.3 percent of Vivendi Environnement's equity in July 2000, when the water and environmental services subsidiary was listed on the Paris Bourse at a share price of $31.23.

Other than the 9.3 percent now allocated to the exchangeable bonds, Vivendi Universal holds 63 percent of Vivendi Environnement, and the company said it intends to maintain its majority control at this level for the long term.

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