Vivendi May Be Seeking SEC Deal

Vivendi Universal is in talks with the Securities and Exchange Commission in hopes of reaching a last-minute settlement in its 18-month probe into the French entertainment and telecom giant, a source familiar with the discussions said Monday.

The SEC, which is investigating possible breaches of accounting law by Vivendi while Jean-Marie Messier was chief executive, obtained a court order on Sept. 24 to freeze Messier’s $23-million severance payment for 90 days while it completes the probe.

Vivendi wants to reach an out-of-court settlement to avoid civil action being filed by the SEC before that deadline expires today, the source said on condition of anonymity.

The regulatory agency’s case was strengthened by a September report in which its French counterpart, the COB, said Vivendi had broken French rules on financial disclosures.

The COB said its 14-month investigation had identified irregularities that could constitute criminal offenses. It sent a copy of its 90-page report to French prosecutors and launched its own sanctions procedure.

Any deal with the SEC could require Messier and Vivendi to reach a settlement ending their dispute over the legality of Messier’s severance payment.

The COB ruled in July that the payment had not been approved by Vivendi’s board, as required by law.

Vivendi Universal refused to confirm that talks were taking place. The SEC also declined to comment.

Lawyers for Messier did not return calls.