Vivendi halts acquisitions over &#036;19bn <BR>debt worries

LONDON - Vivendi Universal chief executive Jean-Marie Messier has told shareholders and analysts that he will not be seeking acquisitions in 2002, in an attempt to ease concerns about the company's $19.1bn (£11.7bn) debt pile.

The reassurance follows aggressive expansion, which has seen the company transform from a utilities company into a global media player through a string of acquisitions.



The transformation began in 2000 when it merged with the Seagrams drinks business and Canal+ in a $34bn deal. This was followed more recently by the $10bn acquisition of USA Entertainment.



Investors and analysts have been concerned that the Franco-American media giant may want to continue its acquisition spree in a bid to take on the likes of AOL Time Warner.



Messier said: "I want to re-state very clearly that we are not contemplating or scrutinising any significant, or non-significant, acquisitions for 2002. We have no need."



Messier's comments came as the company posted full-year net losses for the whole company -- including its environment division -- of €13.6bn (£8.4bn), after writing off €15.2bn related to acquisitions, against a net profit of $2bn (€2.3bn) last time.



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