Indebted media giant Vivendi Universal said today it was selling its non-US publishing assets to France's Lagardere in a deal worth euro1.25 billion including debt.
To avoid potential competition problems hindering the deal and secure much-needed cash, Vivendi said it was selling the assets to French bank Natexis-Banque Populaire which will sell them on to Lagardere once it wins anti-trust approval.
Vivendi shares fell more than seven per cent in early trade on what was seen as a less-than-ideal outcome for the auction after the French-American media group also confirmed it had decided to sell its US publisher Houghton Mifflin separately after receiving a disappointing range of offers.
Vivendi had hoped to raise euro4 billion for the assets which include some of France's top reference and educational titles.
Lagardere, which owns French society magazine Paris Match, had been a relative latecomer to the publishing auction and was viewed as the French government's favoured contender for some of France's most prized publications. However, the French publisher could still face competition issues, especially in France.