AOL to Decide on Payment to Vivendi

AOL Time Warner Inc., the world’s largest media company, must decide whether to use $812 million in cash, stock or both to buy Vivendi Universal’s stake in the AOL Europe Internet venture, a Vivendi filing said.

AOL may negotiate a lower price with Vivendi by offering to make the payment all or partly in cash, some analysts said. Vivendi prefers cash rather than AOL shares, which have fallen 46% in the last year, analysts said.

Shares of New York-based AOL rose 61 cents to $12.16, and U.S.-traded shares of Vivendi rose 19 cents to $14.40, both on the New York Stock Exchange.