Once high-flier, Vivendi stock below $12

PARIS, August 14, 2002 -- More news about Vivendi's finances spooked investors. Shares dropped to $11.66 on the Paris exchange -- another 24 percent in a single day. Among the bad news: Standard & Poor's, an investment rating service, demoted Vivendi bonds to junk status. S&P said it doubts whether the announced sale of assets, including U.S. textbook puiblisher Houghton Mifflin, can generate enough cash by March to meet repayment deadlines. Another rating service, Moody's, which assigned junk status last month, cut the rating three more levels to B. More downgrades are expected of Vivendi doesn't raise cash quickly.

VIVENDI HOUGHTON MIFFLIN EARLIER ARTICLES About-face for Vivendi chief

An about-face for Vivendi's Fourtou?

PARIS, August 15, 2002 -- Lots of people are scratching their heads at the announcement that Vivendi will sell its Houghton Mifflin textbook company -- a week after chief executive Jean-Reneé Fourtou said that Houghton was secure in the Vivendi fold. Apparently here's what happened, a case of that-was-then, this-is-now. Agnès Touraine, president of subsidiary Vivendi Universal Publishing, of which Houghton is part, had been campaigning at the company's highest ranks to not put her VUP up for sale. Could Fourtou give any assurances, she asked, to counter rumors about a sale that could turn detrimental among people at Houghton and her other VUP companies? To quiet her, Fourtou sent an internal e-mail: "All the rumours concerning Houghton Mifflin ... are totally unfounded. We are proud of this company and of all the integration successes. Houghton Mifflin is in the VUP (Vivendi Universal Publishing) perimeter and will remain part of it." Someone leaked the memo to news reporters, which, Touraine figured would help head off morale and other problems she was anticipating. Meanwhile, though, Vivendi board of directors was moving in the direction of liquidating Houghton. Yes, the decision would strain both Fourtou and Touraine's credibility -- but the situation was desperate.Touraine, always the team player, said after the board decision that she believes Vivendi will book a capital gain on the sale. "The aim is to sell it for more than what we bought it for, and we will do all we can to make that happen," she said.

VIVENDI HOUGHTON MIFFLIN EARLIER ARTICLES Houghton Mifflin on auction block Vivendi chief: Houghton to stay

Ray Garrison (accounting), Brigham Young University, and Eric Noreen (accounting), University of Washington, wrote the 10th edition of Managerial Accounting (McGraw-Hill). Daniel L. Hartl (genetics), Harvard University, and Elizabeth W. Jones (genetics), wrote the fifth edition of Genetics: Analysis of Genes and Genomes (Jones and Bartlett). Debbie Thorne McAlister (business), Southwest Texas State University, O. C. Ferrell (business), Colorado State University, and Linda Ferrell (business), University of Northern Colorado, wrote the fourth edition of Business and Society: A Strategic Approach to Corporate Citizenship (Houghton Mifflin). John W. Moore (chemistry), University of Wisconsin, Madison, Conrad L. Stanitski (chemistry), University of Central Arkansas, and Peter C. Jurs (chemistry), Pennsylvania State University, wrote the fifth edition of Chemistry: The Molecular Science (Brooks/Cole).

Please tell us about your latest project: EDITOR More academic authoring people

Houghton Mifflin on auction block

PARIS, August 14, 2002 -- The board at struggling Vivendi voted to put its U.S. textbook publishing house, Houghton Mifflin, up for sale as Step 1 to raise cash by selling assets. Chief Executive Jean René Fourtou said he hopes that Houghton will draw more than the $2.2 billion that his predecessor, Jean-Marie Messier, paid for the company in 2001. Houghton is the first Vivendi property to go on the block, although the Paris-based conglomerate's money-losing Canal+ television operation was spun off last month. Houghton itself is generating revenue. Fourtou said additional assets will be placed on sale in coming weeks. Vivendi needs to raise US$10 billion with at least at least $5 billion by late spring. The decision to sell Houghton caught some observers by surprise because only a week earlier Fourtou had said the unit in which Houghton operates, Vivendi Universal Publishing, would not be sold.

VIVENDI HOUGHTON MIFFLIN EARLIER ARTICLES Vivendi pushed to explain liabilities Vivendi chief: Houghton to stay

Vivendi pushed to explain liabilities

PARIS, August 14, 2002 -- The agency that regulates the French stock market is pressuring Vivendi, the conglomerate that owns educational publisher Houghton Mifflin, to clarify its off-balanced sheet liabilities, the Wall Street Journal reported. The liabilities, which included loans to company executiuves to buy company stock, were in Vivendi's 2001 annual report, but most people missed them until they were revealed one at a time when the company began unraveling due toi massuive debt. The liabilities include guaratees to buy into Morocco and Monaco telephone systems, complex financing of a Spanish wireless operation, guarantees on utility bonds, and cash guarantees to musicians Herb Alpert and Jerry Moss to buy into MCA Music when Vivendi bought Universal Studios..

VIVENDI EARLIER ARTICLES Fee-seeking banks eye Vivendi role Vivendi paying for "Lonely Bull" Stock deal with executives adds to Vivendi liabilities

HARTT JANSON ARANSON / PRATHER 47 OTHERS

Prentice buys Abrams art history texts

Lynn Margulis (biology), University of Massachusetts, Amherst, and Andrew Wier (biology), University of Massachusetts, Amherst, wrote the fifth edition of Microcosmos Video Series: Volumes I and II (Jones and Bartlett). Belverd Needles (accounting), DePaul University, and Marian Powers (accounting), Northwestern University, wrote the 2002 edition of Principles of Accounting (Houghton Mifflin). John Vivian (masscom), Winona State University, wrote a 2003 update of the sixth edition of The Media of Mass Communication (Allyn & Bacon). Lynne Withey, at the University of California Press since 1986 and acting director since James H. Clark retired in February, was named director.

Please tell us about your latest project: EDITOR More academic authoring people

Vivendi to take $9.8 billion write-down

PARIS, August 13, 2002 -- French conglomerate Vivendi, owner of the Houghton Mifflin textbook company, will write down its asets by US$9.8 billion for the latest fiscal quarter, the Wall Street Journal reported. This means almost for certain that Vivendi will not report any earnings for the quarter despite continuing good performances from Houghton and other media properties. The write-down reflects the dramatic drop in Vivendi stock, more than 70 percent this year. The company, also, took a $17 billion write-down last quarter.

VIVENDI EARLIER ARTICLE Fee-seeking banks eye Vivendi role

Authors fret over Homeland security details

Textbook copying suit settled

Reed: We're cautious on acquisitions now

LONDON, August 11, 2002 -- The chief executive at Reed Elsevier, Crispin Davis, dampened speculation that it is coveting Bertelsmann's scientific-medical publishing subsidiary, BertelsmannSpringer. Davis, however, didn't rule out the possibility. In a statement to investors, Davis said: "After the considerable restructuring, acquisition and disposal program of the last few years, Reed Elsevier is pretty much structured how I want it with four core businesses, therefore it is pretty unlikely we will make a major acquisition." Acquiring BertelsmannSpringer, however, would add to existing core businesses. Whether it would be considered a "major" acquisition is a contentious considering that Reed already is the world's largest publisher and second largest scientific-medical publisher.

REED ELSVIER EARLIER ARTICLE Reed reported eyeing Bertelsmann- Springer

2002 college textbook sales soaring

WASHINGTON, August 10, 2002 -- College texts and materials were up 15.1 percent to $164.6 million in June for a 17.6 percent for the year, according to the latested monthly update from the Association of American Publishers. Reflecting the impact of state budget on school district, el-hi sales fell 10.8 percent in June to $658.2 million, off 6.7 percent for the year. Here are the year-to-date AAP data through June, extrapolated from 74 member-publishers, for genres in which academic authors write: College University press (hard) STM, professional El-hi University press (soft) 17.6 percent 5.0 percent 4.8 percent -6.7 percent -12.0 percent

EARLIER DATA

David W. Ball (chemistry), Cleveland State University, wrote Physical Chemistry (Brooks/Cole). Kermit D. Larson (accounting), University of Texas at Austin, John J. Wild (accounting), University of Wisconsin, Madison, and Barbara Chiappetta (accounting), Nassau Community College, wrote the 16th edition of Fundamental Accounting Principles (McGraw-Hill). Dean McFarlin (business), and Paul Sweeney (business), wrote the second edition of International Management: Strategic Opportunities and Cultural Challenges (Houghton Mifflin).

Please tell us about your latest project: EDITOR More academic authoring people

Authors endorse SA2 news site

Reed reported eyeing BertelsmannSpringer

LONDON, August 9, 2002 -- Press speculation is growing that scientific-medical publisher Reed Elsevier is considering a bid for BertelsmannSpringer although some cautionary notes about regulatory hurdles are also being sounded. With Bertelsmann Springer added to last year's acquisitions of U.S. houses W.B. Saunders, Mosby, and Churchill Livingstone, Reedıs sci-med holdings would be $2.3 billion, which could wring scrutiny from European regulatory agencies. A proposed merger of Reed and rival Wolters Kluwer in 1997 was scuttled over such concerns. U.S. publisher Wiley, with cash for acquisitions available, is also considered a possible suitor for BertelsmannSpringer.

REED ELSVIER EARLIER ARTICLE Bertelsmann- Springer still for sale

Messier memoir in progress

PARIS, August 9, 2002 -- Ousted Vivendi head Jean-Marie Messier is on vacation in the Mediterranean banging away on his side of the story, the newspaper Parisien reported. The working title: How I Was Betrayed." Messier, who based a failed acquisition binge on a media convergence vision that didn't pan out, claims that the failure was his but that of people around and above him who just didn't get it.. His acquisitions included Houghton Mifflin, the textbook publisher. Messier's successors are figuring out how to break up the company to pay off the debts from the acquisitions.

MESSIER EARLIER ARTICLE Where will Houghton land?

Author survey: Did agent help with contracts?

Fee-seeking banks eye Vivendi role

PARIS, August 4, 2002 -- Eyeing million-dollar consulting fees and perhaps lucrative loans, major banks are competing for contracts with French conglomerate Vivendi to advise it through its fiscal difficulties. Already retained are BNP Paribas, Deutsche Bank, Salomon Smith Barney, and Socièté Génèral, according to news reports in the United States, where Vivendi owns Universal movies, Houghton Mifflin textbooks and other interests. Goldman Sachs and Rothchild have roles too, the Wall Street Journal said. Conflict-of-interest charges are arising because some banks are creditors that could be expected to act in their own interest. About Socièté Génèral, Vivendi shareholder activist Collette Neuville said: "The adviser is counseling the borrower on a sale of its assets to raise money that will be used to reimburse the adviser." That can be read only as a conflict, Neuville said. In another possible conflict, the chief operating officer at BNP Paribas is on the Vivendi board, she said.

VIVENDI HOUGHTON MIFFLIN EARLIER ARTICLE Vivendi chief: Houghton to stay

Wiley sees double-digit earnings

NEW YORK, August 3, 2002 -- The president of publisher John Wiley & Sons, William Pesce, said the company is "well positioned for another successful year." Pesce told investors that Wiley will continue to leverage its competitive strengths to generate organic growth in our core businesses -- professional, trade, scientific, medical, technical and higher-ed publishing. What about acquisitions? "We will continue to pursue attractive opportunities," Pesce said. For the year ahead, assuming no major disruption in the marketplace, he said to expect double-digit growth in revenues and earnings.Two bestsellers, Christopher Byron's Martha, Inc. and Martin Weiss' Ultimate Safe Money Guide. helped power recent earnings, he said. Pesce also credited the 13th edition of the Architect's Handbook of Professional Practice from the American Institute of Architects. Subscription renewals for Wiley academic journal have been strong, he said, noting the addition of three society journals. Revenues for the domestic higher-ed books advanced 42 percent for the fourth quarter of Wiley's most recent fiscal year and 6 percent for the full year. Although enrollments in engineering, a key Wiley area, were flat, the company's business, psychology and geography programs performed well, he said. Higher-ed demographics remain favorable overall, with more students attending college and enrolling in lifelong learning courses than ever before, Pesce said: "In addition, the soft economy has resulted in increased student applications to graduate programs." He said the company has introduced new, value-added materials and services to combat used textbook sales, which he described as "a continuing industry-wide problem." SEE FINANCIALS

JOHN WILEY & SONS

Paul S. Boyer (history), University of Wisconsin, Madison, Clifford E. Clark Jr. (history), Carleton College, Sandra McNair Hawley (history), San Jacinto College, Joseph F. Kett, (history), University of Virginia, Neal Salisbury (history), Smith College, Harvard Sitkoff (history), University of New Hampshire, and Nancy Woloch (history), Barnard College, wrote the fourth edition of The Enduring Vision: A History of the American People, Concise (Houghton Mifflin). Campbell R. McConnell (economics), University of Nebraska, and Stanley L. Brue (economics), Pacific Lutheran University, wrote the 15th edition of Economics (McGraw-Hill). Glen E. Rodgers (chemistry), Allegheny College, wrote the second edition of Descriptive Inorganic, Coordination, and Solid State Chemistry (Brooks/Cole). James T. Shipman (science), Ohio University, Jerry D. Wilson (science), Lander University, and Aaron W. Todd (science), Middle Tennessee State University, wrote the 10th edition of An Introduction to Physical Science (Houghton Mifflin).

Please tell us about your latest project: EDITOR More academic authoring people

BertelsmannSpringer still for sale

July tally for SA2 site: 165 items

Money-losing Natural History sold

NEW YORK, August 2, 2002 -- The American Museum of Natural History sold its magazine Natural History to two sciecne editors from other publications. The new owners are Charles Harris, who will be publisher, and Peter Brown, who will be editor. Terms were not. Harris and Brown have financial support from Exeter Capital Partners. Harris has been with American Scientist, Physics Today and Scientific American. Broiwn was editor at The Sciences, which was owned by the New York Academy of Science until it folded last year. The circulation of Natural History peaked in 1995 at 450,000. It has since sliopped to 225,000, and the publication is losing money. Harris said he and Brown hope to find other museums that will offer Natural History to their members. He declined to comment on reports that a family of science journals is planned around Natural History as a centerpeice.

JOURNALS NATURAL HISTORY

Vivendi chief: Houghton to stay

PARIS, August 2, 2002 -- To put out flames, the new chair of Vivendi, Jean-René Fourtou, issued a denial that the French conglomerate's U.S. textbook subsidiary, Houghton Mifflin, is for sale. The denial was in an e-mail message to Agnès Touraine, president of the Vivendi unit of which Houghton is part: "All the rumours concerning Houghton Mifflin ... are totally unfounded. We are proud of this company and of all the integration successes. Houghton Mifflin is in the VUP (Vivendi Universal Publishing) perimeter and will remain part of it." The message was soon in wide distribution, prompting observers to conclude that it was drafted for general consumption. Vivendi acquired Houghton in June 2001, and some observers have seen it as an easy asset for cash-needy Vivendi to divest because, contrary to Fourtou's statement, the integration into VUP and the larger Vivendi conglomerate has far to go. Skeptics noted too that a careful reading of Fourtou's message does not rule a sale of Vivendi Universal Publishing as a unit. VUP includes Houghton Mifflin, French magazines, a children's book unit, and other components. Despite the skepticism, Houghton spokesman Collin Earnst said that persistent news reports about a pending sale just aren't so: "There was no indication that Houghton Mifflin was for sale, and Mr. Fourtou's comments confirm that."

VIVENDI HOUGHTON MIFFLIN EARLIER ARTICLE Messier's big goof: Houghton Mifflin

McGraw sees double-digit earnings

NEW YORK, August 1, 2002 -- Media giant McGraw-Hill, whose interests include textbook and professional publishing, will produce double-digit earnings gain for the year despite softness in the elementary-high school market, said chief executive Terry McGraw. Revenue from the McGraw unit that includes college publishing grew 1.9 percent in the second quarter. "In the higher education market, a growing array of e-learning solutions for instructors and students and a strong, new frontlist helped produce double-digit gains as the summer sales season got underway," McGraw said. Best-sellers included Campbell McConnell and Stan Brue's 15h edition of Economics, Kermit Larson John Wild and Barbara Chiappetta's 16th edition of Fundamental Accounting Principles, Ray Garrison and Eric Noreen's 10th edition of Managerial Accounting, and Bradley Schiller's ninth edition of Economy Today. The el-hi group produced strong gains in testing, science, supplementary reading and math, but could not overcome reduced sales opportunities in adoption states, McGraw said. He said the company "is on course to capture about 30 percent of the adoption market this year." It won a 40 percent share of the middle school science adoption in Texas and will lead all competitors in K-12 science adoptions this year, he said.Mcgraw acknowledged that the company's basal reading program is not meeting expectations in the Oklahoma and Florida but is performing well in Florida, California and elsewhere. Everyday Math is also producing good results, he said. In the testing market, new statewide contracts were won in Indiana, Missouri and Tennessee. "We're also benefiting from increased attention to educational reform created by the No Child Left Behind Act," he said. "As a result, we're winning significant adoptions for our early literacy testing program, Fox in a Box, in Florida and Montana. SEE FINANCIALS

MCGRAW

Pierre G. Bergeron (finance), University of Ottawa, wrote Survivor's Guide to Finance (South-Western). Carol Berkin (history), Baruch College, City University of New York, Christopher L. Miller (history), University of Texas, Pan American, Robert W. Cherny (history), A. James Fuller, (history), San Francisco State University, and James L. Gormly (history), Washington and Jefferson College, wrote the third edition of Making America: A History of the United States (Houghton Mifflin). Michael A. Seeds (astronomy), Franklin and Marshall College, wrote the seventh edition of Horizons: Exploring the Universe and The Sky (Brooks/Cole).

Please tell us about your latest project: EDITOR More academic authoring people

Pearson revenue hurt by newspaper operation

LONDON, August 1, 2002 -- The high-flying media conglomerate Pearson, the largest world's largest textbook publisher, has hit stormy weather with a second fiscal quarter of net losses. The textbook business is OK, but the worldwide recession has hurt advertising revenue at the Financial Times, Pearson's flagship London newspaper, said chief executive Marjorie Scardino. Pearson's newspaper ad revenue was off 31 percent through June, she said. The parent company's revenue fell 3 percent to US$2.8 billion in the first half , compared to a year earlier. Operating profit grew 26.6 percent to $118.9 million. Scardino said second-half will be better because college textbook sales pick up for the fall classes. The Pearson Education subsidiary, whose imprints include Prentice Hall and Allyn & Bacon, account for 60 percent of the company's business. What about the newspaper operation? Scardino said recovery is a ways off. Corporate advertising, especially important at the Financial Times, is its worst in 30 years, she said. SEE FINANCIALS

SCARDINO EARLIER ARTICLE Pearson chief talented? Just lucky? Stay tuned

Fast-track approval set for library loans

David Ingre (writing), Kwantlen University College, wrote Survivor's Guide to Technical Writing (South-Western). Jenelle Leonard, project manager of Technology Innovation Challenge Grant Program at the U.S. Education Department, was named to the advisory board at Harcourt's Classroom Connect. Franca Celli Merlonghi, (Italian), Ferdinando Merlonghi, (Italian), Joseph A. Tursi (Italian), State University of New York at Stony Brook, and Brian Rea O'Connor (Italian), Boston College, wrote the seventh edition of Oggi in Italia (Houghton Mifflin). Jay M. Pasachoff (astronomy), Williams College, wrote the sixth edition of Astronomy: From the Earth to the Universe (Brooks/Cole).

Please tell us about your latest project: EDITOR More academic authoring people

European boards shaking things up

Scholastic links magazine to standards

NEW YORK, August 1, 2002 -- Early-childhood publisher Scholastic created standards-based tests for its Grades 3-6 weekly magazine Scholastic News. Multiple diagnostic skills tests will help teachers integrate magazine content into state assessment preparation, the company said. The testing material will be free to subscribers. The classroom magazine has 25 million circulation in English and Spanish.

EL-HI SCHOLASTIC