Do you remember how entertainment company Vivendi Universal, owners of Polydor, Mercury and Island record labels, plunged into financial mayhem after accusations of false reporting this summer? Now a report in the Wall Street Journal suggests how the company got into such a mess, accusing former chief executive Jean-Marie Messier of being an uncontrolled deal junkie who made decisions without telling anyone else in the company, frequently buying up new companies without informing directors of all the implications. It claims Messier blew billions of dollars buying back Vivendi stock last year in an attempt to keep the share price up; despite the objections of finance director Guillaume Hannezo. The share buy backs caused Vivendi's debt to mushroom, and helped cause the company's financial woes. The work to rescue the Universal group continues - the further sell off of some of its assets (including its music enterprises) has not been ruled out.
Nov 1, 2002
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1 min read
Wall Street Journal blames Vivendi's problems on Messier's deal-making
A Wall Street Journal report accuses former Vivendi chief Jean-Marie Messier of uncontrolled deal-making and billions spent on share buybacks, and says further asset sales including music units are not ruled out.