The European internet market was left confused yesterday as to whether any of America Online Inc’s European joint ventures intends to become publicly quoted, following remarks from AOL France’s CEO and a subsequent denial from AOL Europe.
French CEO Stephane Treppoz told a news conference Wednesday that AOL Europe, a 50-50 joint venture between AOL and German conglomerate Bertelsmann AG, intended to float on the Paris bourse next year. AOL Europe owns 45% of AOL France, with the remainder owned by Cegetel SA and TV company Canal Plus, which are both controlled by Vivendi SA, the telecoms and media conglomerate. Treppoz said that Vivendi might end up swapping its AOL France stake for a share of the listed parent.
But yesterday a red-faced AOL Europe issued a statement denying that the listing was to take place. The company, which operates in Germany and the UK, said: The shareholders of AOL Europe have made no decisions whatsoever about whether AOL Europe will be floated on any stock exchange in the future. The firm then went on to attribute the comments – made by the CEO of its own subsidiary – to market rumor, on which it couldn’t comment.
The notion that Treppoz may have been telling the truth, albeit with his foot in his mouth, is somewhat more credible given Vivendi CEO Jean-Marie Messier’s comments earlier this year that he wouldn’t mind expanding his company’s internet holdings Europe-wide. AOL France has evidently under-performed, failing to meet its stated subscriber targets as it struggles against France Telecom SA’s dominant Wanadoo ISP.
