Vivendi Raises More Cash in USA Deal

Vivendi Universal raised more cash to cut its debt when it sold some USA Interactive securities for $240 million, sending shares of the online commerce firm tumbling.

Vivendi said it was selling 28 million of its warrants on USA Interactive stock in a deal linked to a wider transaction announced by Deutsche Bank’s Luxembourg arm to launch a $805-million exchangeable bond.

USA Interactive shares fell almost 9% to $22.47 on Nasdaq on news of the bond and sale of warrants, which are convertible into stock, on fears the issue could dilute USA’s stock, or that investors such as hedge funds may buy the bonds and sell the stock short.