Vivendi expects new funding soon

PARIS, France -- Vivendi Universal's shares jumped more than seven percent early on Monday after the media giant said it expected to reach an agreement soon with creditor banks to avoid a cash crisis.

"Vivendi Universal confirms that it is in active negotiations with its main credit banks to address... short-term liquidity concerns," it said in a statement.

That followed an earlier statement on Monday by credit rating agency Moody's Investors Service, which warned that Vivendi could face another downgrade if its liquidity problems did not improve in the near future.

Last week, Moody's and Standard & Poor's cut Vivendi's credit rating over concerns the group could have problems paying back short-term loans due to a heavy debt load and plunging shares following an acquisition spree.

Vivendi's chief executive Jean-Marie Messier resign on Wednesday after losing the confidence of the group's board. He was replaced by Jean-Rene Fourtou, the non-executive vice chairman of French drugmaker Aventis.

The group is expected to begin selling many of the assets accumulated under Messier's leadership -- including Universal Studios and Universal Music, and French pay-TV group Canal Plus -- as he turned the former French utility company into the world's second biggest media concern.

Vivendi is also likely to sell its stake in telecom company Cegetel to UK operator Vodafone (VOD), which is already a partner in the venture.

Messier's buying spree resulted in a debt load of 19 billion euro ($18.6 billion) and more than a 70 percent loss in the group's share price this year alone.

Vivendi (PEX) shares slipped from their highs in Paris on Monday and were up about 1.4 percent at 17.25 euros in mid-morning trading.