UPDATE 1-Vivendi pays off debt to Herb Alpert + partner
Tue March 11, 2003 07:11 AM ET
(adds details, background, shares)
PARIS, March 11 (Reuters) - Media giant Vivendi Universal EAUG.PA cleared its slate of another debt on Tuesday when it paid 191 million euros ($211 million) in cash and stock to Herb Alpert, creator of the Tijuana Brass music, and his partner.
Vivendi, the world's second biggest media group, said it had paid Alpert and Jerry Moss 0.8 percent of Vivendi stock and $100.3 million in cash as part of a guarantee agreed when they sold their music publishing company Rondor Music International.
Moss and Alpert, whose hits with the Tijuana Brass included "The Lonely Bull", sold Rondor to Universal Music in 2000. As part of the deal, they had the right to an extra payment if Vivendi's U.S. shares fell below $37.50 for 10 days in a row.
Vivendi shares have been below that level for at least the past nine months, ending at $12.27 in New York on Monday. In Paris, the stock was one percent up at 11.27 euros at midday.
At Monday's closing share price of 11.15 euros in Paris, the stock and cash payment was worth 191.2 million euros.
Vivendi is under pressure to sell assets to cut a huge debt pile expected to reach 15.1 billion euros by the end of March.
But a number of other liabilities have also been hanging over the French-American media group including the Rondor payment, various Vivendi puts and property-related guarantees.
After dragging itself back from the edge of collapse last year, Vivendi could face another cash squeeze this year unless it gets cash in from disposals soon, analysts say.
Alpert and Moss sold Rondor to Universal Music for $350 million in stock in August 2000. At the time of the deal, Rondor's catalogue included more than 60,000 songs including the Beach Boys' "California Girls".
Rondor became part of Vivendi when the group bought Universal's parent company Seagram in December 2000.
Alpert and Moss decided to sell their shares in April and May of last year. Under the deal, Vivendi was then due to pay the extra payment this month.
Vivendi said in a statement the objectives of its share buyback programme -- initially designed for "regularising" the share price and covering stock option plans -- had been extended to cover payment of the Rondor guarantee.
Tue March 11, 2003 07:11 AM ET
(adds details, background, shares)
PARIS, March 11 (Reuters) - Media giant Vivendi Universal EAUG.PA cleared its slate of another debt on Tuesday when it paid 191 million euros ($211 million) in cash and stock to Herb Alpert, creator of the Tijuana Brass music, and his partner.
Vivendi, the world's second biggest media group, said it had paid Alpert and Jerry Moss 0.8 percent of Vivendi stock and $100.3 million in cash as part of a guarantee agreed when they sold their music publishing company Rondor Music International.
Moss and Alpert, whose hits with the Tijuana Brass included "The Lonely Bull", sold Rondor to Universal Music in 2000. As part of the deal, they had the right to an extra payment if Vivendi's U.S. shares fell below $37.50 for 10 days in a row.
Vivendi shares have been below that level for at least the past nine months, ending at $12.27 in New York on Monday. In Paris, the stock was one percent up at 11.27 euros at midday.
At Monday's closing share price of 11.15 euros in Paris, the stock and cash payment was worth 191.2 million euros.
Vivendi is under pressure to sell assets to cut a huge debt pile expected to reach 15.1 billion euros by the end of March.
But a number of other liabilities have also been hanging over the French-American media group including the Rondor payment, various Vivendi puts and property-related guarantees.
After dragging itself back from the edge of collapse last year, Vivendi could face another cash squeeze this year unless it gets cash in from disposals soon, analysts say.
Alpert and Moss sold Rondor to Universal Music for $350 million in stock in August 2000. At the time of the deal, Rondor's catalogue included more than 60,000 songs including the Beach Boys' "California Girls".
Rondor became part of Vivendi when the group bought Universal's parent company Seagram in December 2000.
Alpert and Moss decided to sell their shares in April and May of last year. Under the deal, Vivendi was then due to pay the extra payment this month.
Vivendi said in a statement the objectives of its share buyback programme -- initially designed for "regularising" the share price and covering stock option plans -- had been extended to cover payment of the Rondor guarantee.
All Options are Open in 2003. 
