USA Interactive Sinks as Vivendi Sells Warrants

USA Interactive (USAI Quote) slid 7% Wednesday after Vivendi (V Quote) sold off a bunch of USA stock warrants in its continuing quest to raise cash.

The companies said Vivendi had agreed to sell 28 million USA warrants for $240 million in cash to Deutsche Bank, which in turn plans to sell notes exchangeable for the warrants. Three-quarters of the warrants carry an exercise price of $27.50, and the other quarter has a $32.50 exercise price, Vivendi said.

USA dropped $1.48 to $22.77 as investors worried about the prospect of more shares coming on the market. Vivendi dropped 20 cents to $15.25. ...