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Vivendi taps U.S. Filter
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March 22, 1999: 9:02 a.m. ET
$6.2B acquisition gives French utility big stake in U.S. water market
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NEW YORK (CNNfn) - French conglomerate Vivendi said Monday it will acquire U.S. Filter for $6.2 billion (5.7 billion euros), creating the world's largest water treatment firm.
Vivendi said that the deal, which gives it an important toehold in the U.S. water market, is the largest French acquisition ever in the United States. The company said it will pay $31.50, or 29 euros, for each share of U.S. filter in a two-step offer.
In the first stage, a Vivendi subsidiary will offer cash for all outstanding shares of U.S. Filter stock within five business days. In the second step, a Vivendi subsidiary will merge into Palm Desert, Calif.-based U.S. Filter.
"What we recognized is that we share a vision of a full-service, global water enterprise," said Jean-Marie Messier, chairman of Vivendi. "Industry is demanding ever-higher standards of processed water for manufacturing, and the demand for quality waste water treatment to protect the environment has never been greater."
Vivendi's businesses range from utilities to media and telecom activities. A tie with U.S. Filter, the largest water company in the United States, will generate annual sales of about $12 billion, or 11 billion euros, nearly doubling Vivendi's revenues in water treatment through its Generale des Eaux subsidiary.
The deal is subject to regulatory approval in the United States and by the European Commission.
Vivendi already has made a series of small purchases in the U.S., including Aqua Alliance in Massachusetts and two companies in Pennsylvania.
U.S. Filter specializes in water-treatment facilities and has expanded into retailing with its purchase last year of Culligan Water Technologies. Fellow French utility Suez Lyonnais des Eaux (PLY) also has been active in U.S. acquisitions while British power companies have been making inroads into the electricity and gas markets.
In New York Friday, U.S Filter stock jumped 2-1/16 to 30-1/2. 
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Vivendi
U.S. Filter
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