A group of investors have offered to buy the US-French media group Vivendi Universal's entertainment assets, but the bid has been turned down, according to reports.

The investor group, which include oil billionaire Marvin Davis, had offered to pay $15bn (�9.5bn), according to The Wall Street Journal.

The group had been keen to buy the Vivendi Universal assets, including Universal Studios, Universal Music and the group's networks and theme parks.

But a source told Reuters that "the proposal did not interest the company".

"First of all, the price does not correspond to the value of the assets and secondly they are not for sale," the source said.

"It is not in line with the group's strategy."

Sell-off

Vivendi Universal chairman Jean-Rene Fourtou is busy selling non-core Vivendi assets to tackle the group's massive debt problem.

With the company valued so cheaply, predators are bidding for their assets

Romain Boscher, Finama Asset Management

Recently, Vivendi announced plans to dispose of assets worth 7bn euros (�4.5bn; $7bn) by the end of the year - and a further 16bn euros by the end of November 2004.

Reports have also suggested that Vivendi is close to selling half its 40% stake in Vivendi Environnement, the water and sewerage firm.

The sale could generate more than 1.8bn euros (�1.1bn).

Vivendi is also keen to acquire the 26% stake in mobile phone group Cegetel currently owned by BT Group.

Vivendi has until 10 December to raise 4bn euros for BT's stake, to counter an existing bid from Vodafone.

Cheering investors

Currently, the company is also undergoing a range of inquiries.

Its account are being investigated in France and it faces criminal investigations in the US.

Nonetheless, investors appeared cheered by news of the possible sale, with shares leaping over 20%.

"The shares are very cheap, and they are starting to come out of the woods a bit now," said Romain Boscher, a fund manager at Finama Asset Management in Paris.

"With the company valued so cheaply, predators are bidding for their assets."