Vivendi buys time with new loan

PARIS, France -- Media giant Vivendi Universal has won a three billion euro ($2.91 billion) loan from 11 banks, giving the group much-needed breathing space to deal with its mountain of debt.

The loan, which had been widely expected, replaces a previous one billion euro line of credit received in July when Vivendi was facing a cash squeeze and provides an additional 2 billion in new funding.

Analysts say the loan will enable the group to complete a new strategy plan and sell assets to help pay down its 20 billion euro debt. The new funding is expected to last for six months.

Vivendi's board of directors will meet next week to discuss plans by Chief Executive Jean-Rene Fourtou to sell the group's water utility, Vivendi Environnement, Reuters reported.

He is also expected to recommend that the group hold onto its communications and U.S. media units.

Vivendi (PEX) shares soared 5.9 percent to 13.99 euros in mid-morning Paris trading on Wednesday.