Debt-Laden Vivendi Plans More Asset Sales
PARIS/LONDON (Reuters) -- Vivendi Universal plans more sell-offs to pay massive debts after announcing plans to break up its French pay-TV subsidiary with a mass disposal of European TV stations. Three weeks into the job of rescuing the world's second-largest media company from crippling overexpansion, new Vivendi Chairman Jean-Rene Fourtou blasted the debt-bloated legacy left behind by his ousted predecessor Mean-Marie Messier. But despite attacking the 19 billion euros ($18.8 billion) of debt chalked up by Messier's drive to conquer Hollywood with the purchase of Universal Studios and a global music business, Fourtou signaled there would be no quick fire sale of Vivendi's assets. "Vivendi Universal's debt is too high. Its reduction will entail significant asset sales whatever happens," Fourtou said. "However, we do not intend to rush into any actions that would damage the company, its shareholders and the businesses involved," Fourtou said in a statement. The news brought no immediate relief to Vivendi's investors who have seen their shares lose three quarters of their value this year on a cocktail of worries about debt, cash flow and financial wizardry used to keep the media group on its feet. Fourtou, who called off Vivendi's first-half results announcement last week to make way for the first lap of restructuring, rescheduled the release for August 14.
PARIS/LONDON (Reuters) -- Vivendi Universal plans more sell-offs to pay massive debts after announcing plans to break up its French pay-TV subsidiary with a mass disposal of European TV stations. Three weeks into the job of rescuing the world's second-largest media company from crippling overexpansion, new Vivendi Chairman Jean-Rene Fourtou blasted the debt-bloated legacy left behind by his ousted predecessor Mean-Marie Messier. But despite attacking the 19 billion euros ($18.8 billion) of debt chalked up by Messier's drive to conquer Hollywood with the purchase of Universal Studios and a global music business, Fourtou signaled there would be no quick fire sale of Vivendi's assets. "Vivendi Universal's debt is too high. Its reduction will entail significant asset sales whatever happens," Fourtou said. "However, we do not intend to rush into any actions that would damage the company, its shareholders and the businesses involved," Fourtou said in a statement. The news brought no immediate relief to Vivendi's investors who have seen their shares lose three quarters of their value this year on a cocktail of worries about debt, cash flow and financial wizardry used to keep the media group on its feet. Fourtou, who called off Vivendi's first-half results announcement last week to make way for the first lap of restructuring, rescheduled the release for August 14.