Paris — Rumors quickly spread in French financial circles Wednesday that Vivendi's $29-billion deal to acquire Seagram had suddenly come undone.

Reuters quoted one unidentified stock trader as saying, "There are rumors that the deal with Seagram has hit the rocks. The talk is coming from London."

Shares in the French media and utilities company quickly rose on the reports, only to fall today (Thursday) with news that the company had abruptly delayed plans for an initial public offering of its utilities arm, Vivendi Environnement.