Vivendi Execs Expected to Resign
Two Vivendi Universal executives, including the chief financial officer, are expected to resign as the company’s new leader begins the inevitable process of ousting those aligned with fallen Chief Executive Jean-Marie Messier, say sources familiar with the matter.
Vivendi Universal Chief Financial Officer Guillaume Hannezo, one of Messier’s closest advisors, is set to step down in the coming weeks, sources say.
In a statement, Hannezo said he hasn’t yet resigned, but signaled a change was forthcoming. “It’s normal for the new management of a company to consider appointing a new financial director,” the statement said. “For the time being, the priority is to work to restabilize the company’s position.”
Hannezo joined Vivendi in 1997 and advised Messier as he arranged a slew of acquisitions that puzzled investors and racked up huge media debts, now totaling $19 billion. The high debt, confusion about the company’s complex balance sheet and disclosures of more than $1 billion in unexpected liabilities spooked investors and analysts, causing a 70% fall in Vivendi’s stock price. Its shares closed Friday at $16.77, down 13 cents, on the New York Stock Exchange.
Vivendi’s board last week replaced Messier with French businessman Jean-Rene Fourtou.
It’s unclear whether Hannezo’s pending departure is linked to an investigation French regulators recently announced into Vivendi’s accounting. The investigation centers on whether Vivendi communicated its liquidity crisis to investors in a timely fashion. Vivendi said it is cooperating with the investigation and that it recently obtained a roughly $1-billion loan from creditors to ease its cash crunch.
Robin Richards, head of the fledgling VUNet USA, also is expected to resign next week, according to sources familiar with the matter.
Richards is the former president of online music company MP3.com, which Vivendi bought last year for $372 million. He also has close ties to Messier, who hired him last year to head Vivendi’s U.S. Internet operations over the objections of some French board members, who wanted all the Internet properties under French control.
Richards was bitter enemies with Edgar Bronfman Jr., whose family helped lead the coup against Messier, said a source close to the company.
VUNet, the U.S. arm of Vivendi’s struggling Internet division, is trying to build businesses around the online distribution of music, video and games, a task complicated by rampant Internet piracy. Its sites include MP3.com, Getmusic.com and Rollingstone.com as well as gaming site Flipside.com.
Richards’ group, which this year bought a mobile entertainment services company, has been working to forge ties with wireless carriers.
The group, created in October, has 500 employees in Los Angeles, San Diego and New York.
A VUNet spokesman declined to comment, as did Richards.
