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Vivendi Universal to sell half its share of Vivendi Environnement

Vivendi Universal (VU) has said it is selling half its share of the capital of utility group Vivendi Environnement (VE), which owns waste management firm Onyx Environmental.

The debt-ridden French corporation is looking to sell 4.45 billion in assets by the end of 2002 and 8.9 billion by the end of 2004. Part of VU's plan is to concentrate on the media side of its business. The company is selling 20.2% of its current 40.8% stake in VE. It has also said that it is likely to drop its entire stake by the end of 2004.

Market analysts believe this will not have much of a visible affect on the business affairs of Onyx Environmental, which is the fourth largest waste management operator in the UK according to Merrill Lynch.

It is expected that the buyer of VE will be French, since the company delivers drinking water to 26m people in France and there is therefore considerable national pressure to keep the company in French hands. Some press reports have indicated that the power group Electricite de France may be a potential buyer.

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