The continuing problems at Vivendi Universal, parent company of the Universal Music Group, have led to a suspension of their shares on the French stock exchange. The troubles started after reports that the group tried to add £970m in profits to its 2001 accounts. French paper Le Monde claimed the group had tried to break regulations by registering the sale of a stake in BSkyB in its 2001 figures. The news has rocked Vivendi’s stock and, despite the resignation of chief executive Jean-Marie Messier yesterday, Vivendi plunged 38% to 14.6 euros (943p)which triggered a suspension under French trading rules. Insiders are now calling for a break up of the entertainment giant, arguing the sum of the group’s parts are considerably greater than their current share price. What this would mean for the Universal Music Group (Polydor, Mercury and Island in the UK) is unclear, as EU officials have in the passed resisted attempts by one of the five majors to buy another. The Media Guardian has suggested that the Bronfman family, which sold it to Vivendi in the first place, may just buy it back.
Jul 2, 2002
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1 min read
Vivendi shares suspended
Vivendi shares were suspended on the French stock exchange after reports of accounting irregularities, with chief executive Jean-Marie Messier resigning.