BARCELONA-- Conglomerate Vivendi SA (VIV.FR) is hard at work on
a new strategy for its far-flung media and telecommunications
assets, and hopes to "start acting in the coming quarters," the
company's chief financial officer said Thursday.
Vivendi has been in the midst of a strategic review since
spring, when shareholder discontent over the company's disparate
structure--with assets spread across varied businesses and
continents --flared because of a sharp drop in profitability at its
French mobile phone unit SFR. Since then, the company has been
privately investigating asset sales and publicly saying no
strategic option is "taboo," sending its share price higher.
"We have raised hopes in the investor community. We have to come
to a conclusion and start acting in the coming quarters," CFO
Philippe Capron said at the Morgan Stanley TMT conference in
Barcelona. "If we didn't do anything, stock would plunge again.
Investors would be justifiably disappointed."
As part of the review, longtime Chairman Jean-Rene Fourtou has
been looking to refocus Vivendi on its media assets, such as
Universal Music Group and French pay-television company Canal Plus,
where board members and executives see more global growth
potential, according to people familiar with the discussions.
The company has received preliminary interest for both its
Brazilian telecom subsidiary GVT and its stake in African phone
operator Maroc Telecom, with bidding possible in coming months,
people familiar with those processes said. Vivendi is also studying
potential deals to merge or sell SFR, the company's largest unit by
revenue and profit, though such deals are less advanced these
people added. All of the deals face potential obstacles on price
and other issues.
On Thursday, Mr. Capron declined to comment on specific deals,
saying instead that the company is working to "validate" and "flesh
out this vision which the chairman has developed." But Mr. Capron
did say that synergies between the company's telecommunications
assets like SFR and its media assets like Canal Plus did not make
enough impact to justify keeping those types of assets
together.
"They are not sufficient to justify the existence of the group,"
Mr. Capron said. "Vivendi has been the product of history at least
as much as by design. That is what we're trying to remedy," he
added.
-Write to Sam Schechner at sam.schechner@wsj.com
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