The offer for Vivendi Universal Games came from a partnership of a video games group and an investment fund, the French business daily Les Echos reported Tuesday, without naming its source.

The debt-strapped French media and communications group said earlier this month it intends to retain the unit at least into 2004.

Les Echos said the company did not intend to accept this new offer at present because it still hopes to attract a one-billion-dollar approach.

The newspaper said Vivendi had rejected other bids from funds which reached a maximum of 550 million dollars.

Shares in Vivendi rose 1.46 percent to 17.37 euros, in a market off 0.32 percent, as investors welcomed the reported bid rejection.

"What is pleasing about this information, is that Vivendi isn't ready to jump into a series of disposals at rock-bottom prices. The group no longer is in a hurry," a dealer in Paris said.

Last week Vivendi said it would continue to pare its debt after announcing a deal to divest its US entertainment assets in a joint venture with General Electric's NBC unit.

Vivendi said the venture, which will create a huge new media group called NBC-Universal, would cut debt to under five billion euros dollars by the end of 2004, compared with about 13.5 billion euros currently.