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Vivendi sells AOL stake
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March 23, 2001: 3:12 p.m. ET
World's No. 2 media company sells AOL France stake for $725M jr shares
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NEW YORK (CNNfn) - Vivendi Universal, the world's No. 2 media company, agreed Friday to sell its 55 percent stake in AOL France to America Online Inc. for $725 million in stock.
Terms of the agreement call for Vivendi Universal group companies Cegetel and Canal+ to exchange their 55 percent stake in AOL France for junior preferred shares in AOL Europe.
In April 2003, AOL Europe will redeem the shares with cash, publicly traded AOL Europe common stock or AOL Time Warner stock.
 CNN.com, a unit of Dulles, Va.-based AOL Time Warner, first reported news of the sale on March 5. America Online is also a unit of AOL Time Warner (AOL: Research, Estimates).
Two-thirds of the transaction will go to Cegetel, which will remain a telecom partner for AOL France. The companies will enter into other distribution and marketing activities, Paris-based Vivendi (V: Research, Estimates) said in a statement.
Shares for AOL jumped $2.63, or 7.15 percent, to $39.40 while American depositary shares for Vivendi gained 99 cents to $56.99 in afternoon trading Friday. 
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