Mr Diller says Vivendi is trying to wriggle out of a deal

USA Interactive, Mr Diller's internet business - owner of online travel agent Expedia, among other firms - said it had been the victim of a "hold up", since Vivendi had not paid an initial tax-related payment.

The US firm also warned it could prevent Vivendi from selling its theme park and media assets if it does not get a letter of credit to protect the value of its investment in the complex partnership the two firms have created.

Vivendi's former chairman, Jean-Marie Messier, last year brought Mr Diller's production studio and cable channels, including the USA Network, into a partnership called Vivendi Universal Entertainment (VUE).

Mr Diller stepped down from VUE last month.

Stumbling block

The news is another blow in Vivendi's attempts to knock its tortured finances back into shape.

The firm is currently attempting to sell some or all of its Universal entertainment business, the parent company of VUE.

In recent days, it has been rumoured to be in talks with potential buyers including computer maker Apple and software giant Microsoft.

Mr Diller says the original partnership agreement gave him the right to sign off on any asset sales if he is not provided a letter of credit for about $2bn to secure his firm's shares in the partnership.

"Vivendi's refusal to honor the clear commitment it made under the Messier regime is a classic case of buyer's remorse - an unjustified refusal to live up to obligations clearly and knowingly made," USA Interactive said in its lawsuit.

As recently as January, Mr Diller and new Vivendi chairman Jean-Rene Fourtou had been in negotiations aimed at resolving the tax dispute.