Vodafone and Vivendi call ceasefire

MOBILE giant Vodafone and media group Vivendi Universal have agreed to bury the hatchet in their battle for control of their French telecoms venture Cegetel.

Relations hit the floor a year ago after Paris-based Vivendi exercised its right of first refusal over Cegetel's minority shares, thwarting Vodafone's £8.2bn takeover bid.

Vivendi, which was strapped for cash, thought Vodafone was taking advantage of its weakness.

Now they will share technology and streamline the venture's complex ownership. Vodafone, which holds 43.9%, will also get its dividend - £350m last year - paid quarterly and a right to share the cash flow.

Vodafone, down 1 1/4p to 124 1/4p, says it still wants full control.