Company repurchases shares for $812.5 million AOL Time Warner (AOLTW) said Tuesday that it had repurchased Vivendi Universal’s preferred shares in AOL Europe for $812.5 million in cash as part of a previous agreement.In March 2001, Vivendi agreed to exchange 55 percent interest in AOL France for non-voting preferred shares in AOL Europe to be repurchased in April 2003.Although the transaction was expected, AOLTW’s decision to pay cash for the stake came as a bit of a surprise given that the company is currently trying to reduce its multibillion dollar debt. However, AOLTW Chairman-elect and Chief Executive Officer (CEO) Dick Parsons said in a statement that the company decided to make a cash purchase because its current stock price is trading so low. AOLTW’s stock has fallen some 70 percent since the conglomerate was formed when America Online Inc. and Time Warner Inc. merged in January of 2001. What’s more, AOLTW reported a loss for 2002 of almost $99 billion, prompting it to put in place a rigid debt-reduction plan in an effort to regain stockholder confidence and boost its sagging stock price.“We believe that repurchasing this interest in AOL Europe with cash, rather than equity, is the right decision for our stockholders, given the current trading price of our stock,” Parsons said.He added that although the transaction will increase AOLTW’s net debt, the company remains committed to meeting its previously stated debt reduction targets. The New York-based media giant added that it has approximately $8 billion remaining in committed available funding. Shares of AOLTW (AOL) traded up 2.38 percent to $12.45 Wednesday morning. Software DevelopmentTechnology Industry