Messier to leave Vivendi Universal

The curtain will fall on one of the media industry's most colourful players when Vivendi's Jean-Marie Messier resigns at a meeting of the board today.
The aspiring media mogul is said to have been laid low by the arrogant streak that not only instilled confidence on the way to market dominance, but which also led him to become distant and unpopular with board members and shareholders.
Messier's six years with the company saw him develop the French water utility Compagnie Générale des Eaux into a massive global media offshoot branded Vivendi (then Vivendi Universal after acquiring Universal Studios).
Messier could not quite play off the US/French axis on his board and growing dissent over debts and the shareprice finally toppled the man whose failings at Vivendi found expression in the term – the 'Messier discount'.
However, the so-called 'Messier discount' could outlive the chief executive. On Tuesday, when it became apparent the chief executive would go, Vivendi Universal shares still dropped 26%, only to suffer a further fall of 4.5% on Wednesday morning to €16.95.
The Financial Times has reported that Standard and Poor and Moody's have now graded Vivendi shares to the threshold of junk status. As for the massive debts, which have panicked investors and divided board members, bankers are saying that the company must recapitalise and refinance its debt burden.
One analyst said: "They have to sell Vivendi Environnemental and Canal Plus. Doing nothing is not an option anymore."
Last Friday, the FT reported that French banks BNP Paribas and Société Générale would not agree new loans until guarantees were made as to who would be in charge of company in the coming months. Messier's precarious position was viewed as a liability to the company by creditors and, in turn, those who supported him.
Messier was also reportedly in favour of adopting US accounting practices, but the stain of Enron, Tyco and WorldCom heaped more pressure on him as, on Monday, the company rushed to deny media reports that it would mask the true effect of releasing shares in BSkyB.
Jean-Rene Fourtou, number two at Aventis, is said to be the frontrunner to act up and lead the company in the medium term.
Messier is reported to move on with shares in the company worth around €10.5 million.
Vivendi Universal, www.vivendiuniversal.com
(GMcG)