Vivendi, the French services group which owns the Dalkia group of companies, agreed last week to sell its property arm Compagnie Générale d'Immobilier et de Services (CGIS) to a group of investors led by LBO France and CDC Participations.

According to a report in the FT the price was not disclosed, but prospective bidders were this year said to be valuing the business at between $800m and $1bn.

The disposal is part of Vivendi's strategy to focus on its two core businesses - environmental services and communications. Construction and property contributed 25% to turnover last year, as against 40% in 1995. The proportion of total capital employed in the two core businesses rose from 55% in 1995 to 80% in 1999 and Vivendi expects it to reach 95% this year.

Richard Byatt