Vivendi to Swap AOL Shares

French entertainment giant Vivendi Universal said it will exchange the 55% stake it held in Internet service provider AOL France for shares in AOL Europe. Under the agreement, Vivendi’s mobile-phone unit Cegetel and its pay-television division Canal Plus will exchange their 55% share in AOL France for junior preferred shares in AOL Europe, valued at $725 million. AOL Europe will redeem the preferred shares in April 2003 with cash, publicly traded AOL Europe common stock or AOL Time Warner Inc. stock.