UPDATE 1-Thomson SA Q3 sales fall, no asset sales yet

* Q3 sales down 20.2 percent

* Still in talks for Grass Valley sale

* Talks for Screenvision U.S. disposal in final stages

* Shareholders now seen approving debt deal in Q1 2010

* Shares down 4.8 percent

(Adds detail, analyst comment, shares)

By Dominique Vidalon

PARIS, Oct 22 (Reuters) - Debt-laden French media technology group Thomson SA TMS.PA posted a 20 percent fall in third-quarter sales and said it had yet to clinch deals to sell assets earmarked for disposal, hitting its shares on Thursday.

The group also said approval by shareholders of the debt-for-equity restructuring deal, aimed at slashing 45 percent off 2.9 billion euros ($4.33 billion) of debt, would now be delayed to the first quarter 2010 from the fourth quarter 2009.

Thomson, which sealed a debt restructuring deal with creditors in July, has been seeking to sell assets as part of its efforts to boost its balance sheet. [ID:nL0331877]

"Thomson continues to work towards the implementation of the restructuring announced on July 24 2009, which is supported by a majority of its senior creditors," the statement said.

Since July, the group received the support from additional senior creditors, it added.

The supplier of set-top boxes, professional DVD, video and telecom equipment, said third quarter sales reached 803 million euros, down 20.2 percent at current currency, and down 19.4 percent at constant currency.

It blamed the revenue decrease on "weak orders from Connect customers, continued weakness of the DVD replication market and closure of the North American telephony business at end 2008"

Thomson competes with Motorola (MOT.N), Siemens (SIEGn.DE) and Sony Corp (6758.T). The group's key clients include film studios, software and games producers such as Microsoft (MSFT.O) and Electronic Arts (ERTS.O), European and American broadcasters, satellite operators and telecoms groups such as France Telecom (FTE.PA).

By 0800 GMT, Thomson shares were down 4.8 percent at 1.28 euros, above a session low of 1.22 euros.

"Disappointing Q3 but satisfactory cash generation," said Oddo Securities in a note.

The group's cash position at end-September was 551 million euros, a rise of 40 million euros from June 2009.

Estimated net financial debt stood at 2.170 billion euros at end-September against 2.311 billion at end-June.

NO DEAL YET ON ASSET DISPOSALS

To cut debt, Thomson SA has vowed to sell businesses that contributed around 1 billion euros to its 2008 sales, including broadcast and TV/film equipment maker Grass Valley, advertising unit PRN, and cinema advertising unit Screenvision.

On Thursday, Thomson said the sale process of Grass Valley was still ongoing and that "it is premature at this stage to anticipate the outcome of the negotiations".

It said the PRN disposal process had resumed and that the Screenvision U.S. disposal was "in final stages of discussions".

Thomson SA shares have gained 40 percent so far this year, giving it a market capitalisation of 363 million euros. (Reporting by Dominique Vidalon; Editing by Hans Peters) ($1 = 0.6697 euro)