|
Vivendi eyes AOL Europe
|
 |
February 2, 2000: 7:06 a.m. ET
French firm's venture with Vodafone seeks stake from Mannesmann's clutches
|
LONDON (CNNfn) - French media and utility group Vivendi said Wednesday its Internet joint venture with mobile phone operator Vodafone AirTouch wants to acquire a 50 percent stake in Internet service provider AOL Europe, replacing media giant Bertelsmann and dealing another crushing blow to the takeover defense of Germany's Mannesmann.
Vivendi announced surprise plans Sunday to team up with Vodafone to launch a pan-European Internet joint venture known as MAP. This will distribute content through the companies' 70 million pay-TV and mobile phone subscribers. Mannesmann had courted Vivendi as a white knight in its defense against the hostile bid from Vodafone, only to see its potential partner switch sides.
Vivendi said that MAP would like to replace Bertelsmann as America Online's partner in AOL Europe, which would thwart Mannesmann's ambitions. Bertelsmann is expected to sell its stake following the merger between CNN parent Time Warner (TWX: Research, Estimates) and America Online (AOL: Research, Estimates) which puts AOL in direct competition with the German company's own music interests.
AOL Europe has said it is in talks with several mobile phone operators on Internet cooperation, and confirmed talks with Vivendi to widen its partnership.
"We... know that Bertelsmann will probably withdraw from the capital of AOL Europe and that AOL will naturally seek a new partner. MAP appears to be the best possible partner for AOL and we are very seriously studying this possibility," an AOL spokesman told Reuters.
Vivendi's announcement Wednesday helped shares in all of the parties involved soar amid heightened expectations that Vodafone will secure victory when Mannesmann shareholders vote on Feb. 14.
Vivendi (PEX) shares jumped 6.5 percent, Vodafone (VOD) rose 6.1 percent and Mannesmann (FMMN) gained 6.4 percent.
Canal Plus (PCAN), the French pay-TV operator in which Vivendi has a 40 percent stake, rose by as much as 21.25 percent before being halted limit up for a third time. It had already gained 15.32 percent on Tuesday. Shares in media-to-missiles group Lagardère (PLG), which has two joint ventures with Canal Plus, gained 8 percent.
Mannesmann's defense has been built around leveraging its own Internet assets, and the German firm had said it was in talks to acquire Bertelsmann's stake in AOL Europe. 
--from staff and wire reports
|
|
|
|
|
 |
|
