Messier Steps Up for Ex-Colleagues
Jean-Marie Messier, the beleaguered former chief executive of Vivendi Universal, asked Monday to be placed under investigation in a judicial probe into alleged share price manipulation by the French media and entertainment company.
Messier, who left Vivendi in July 2002, said in a statement that he accepted responsibility for a share buyback the previous year, which the company’s accusers say broke French stock market laws.
His request came after French prosecutors began legal action against Vivendi Treasurer Hubert Dupont-Lothelain, his deputy Francois Blondet and a senior employee of Deutsche Bank.
Lawyers for the two executives confirmed that last week they were placed under formal investigation, one step short of being charged. Philippe Guez, a senior manager at Deutsche Bank and the former head of its equities arm, was placed under investigation Friday, judicial officials said.
The Vivendi employees are accused of arranging for the company to buy shares above authorized volumes in September and October 2001 in an effort to boost their market price.
A Vivendi spokesman declined to comment on the investigation.
In a statement, Messier wrote, “I request to be placed immediately under investigation to take responsibility for this legitimate decision by the company, to explain myself and to defend my former colleagues.”
“As former president of the group, I accept responsibility for the decision to go ahead with the buyback, in the interest of shareholders,” he added.
Earlier, Dupont-Lothelain’s lawyer, Roger Doumith, said his client had been acting under orders when the buyback occurred, shortly after the Sept. 11, 2001, terror attacks in the United States wreaked havoc on world markets.
Emmanuel Daoud, attorney for Blondet, said the share purchases were so large that both the French stock-market regulator and Vivendi’s top management must have been aware of them.
The market watchdog in September concluded an investigation into financial irregularities at Vivendi. Based in part on the investigation’s findings, prosecutors opened a criminal probe in October into alleged publication of false financial results and dissemination of false or misleading information on the company’s financial outlook for 2001 and 2002.
The investigation is also based on an earlier complaint filed with prosecutors by a small shareholders’ group, APPAC.
The shareholders are alleging mismanagement by Messier, who ran up debt of about $42 billion through an ambitious acquisition spree carried out before the Internet bubble burst in 2000.
Messier gave up his claim to a contested $25-million severance package in December, when he and Vivendi reached a deal with the U.S. Securities and Exchange Commission to settle a parallel probe into alleged irregularities at the company.
