NEW YORK - French media and utilities company Vivendi will continue with plans for a U.S. stock market listing despite a delay in the planned initial public offering of its environmental assets, Reuters News Service reported July 13.
The listing is part of Vivendi's attempt to attract U.S. investors as it seeks to transform itself into a global media powerhouse. Vivendi last month announced plans to buy Seagram Co. Ltd., parent of Universal Studios, for about $29 billion in stock.
A Vivendi spokesman in Paris could not be reached for comment on the status of the U.S. listing.
Earlier Thursday, Vivendi unexpectedly delayed the IPO of Vivendi Environment to July 20 and cut the price range due to a decline in investor demand. The unit includes Vivendi's water and wastewater treatment, transport and energy operations.
Although the initial IPO was three times oversubscribed by private investors, it had been snubbed by institutions for whom up to 90 percent of the 83.68 million new shares had been reserved.
Vivendi on Thursday changed that mix to 50-50. Vivendi Universal, which is the new company to be formed by the Seagram combination, will hold about 70 percent of Vivendi Environment.
The IPO delay was another blow to Vivendi's share price, which has dropped sharply in the past month due to concerns about dilution from the Seagram deal and intense scrutiny from regulators on both sides of the Atlantic.
