Messier Payout Challenged

An association of French shareholders said it would challenge the decision by a tribunal to award $23.5 million in severance indemnities to former Vivendi Universal Chief Executive Jean-Marie Messier.

The Assn. for the Defense of Minority Shareholders will take legal action in the United States and in France to oppose the June 27 decision by an arbitration tribunal in New York, Colette Neuville, head of the association, said Friday.

“It’s a major scandal that investors must pay Messier,” Neuville said. “We have to prevent the payment.”

Vivendi this week said it planned to take legal action against the payment to Messier, who was ousted after his efforts to transform the Paris-based water utility company into a global entertainment giant almost capsized the firm under a massive debt load.

After firing him in July 2002, Vivendi sought to void his termination agreement.

The association will challenge the tribunal’s decision in the United States before next Friday and ask the agreement to be nullified by a French court, Neuville said.

Vivendi is weighing potential buyers for U.S. entertainment assets, including the Universal studios, cable TV networks and theme parks, bought during Messier’s tenure.

More than a dozen shareholder lawsuits have been filed against Messier and Vivendi.