French media and telecoms group Vivendi has resolved not to publically reveal what was decided at its highly-anticipated strategy meeting in Paris over the weekend, at which top executives were expected to discuss potentially major structural…
French media and telecoms group Vivendi has resolved not to publically reveal what was decided at its highly-anticipated strategy meeting in Paris over the weekend, at which top executives were expected to discuss potentially major structural changes.
It had been suggested previously that discussions could include a possible spin-off of Vivendi’s mobile network subsidiary SFR.
Vivendi issued a statement today confirming only that its supervisory and management boards had gathered at the two-day annual event to “work on the group’s strategic orientations”.
“The outcomes of this meeting are not to be released publically,” the company stated. “Vivendi will communicate on its plans and the necessary evolution of the group as and when appropriate.”
In April, Vivendi denied a Bloomberg report that stated it was considering a breakup into separate media and telecoms entities or the disposal off its pay-TV arm, describing the claims as “ungrounded”.
However, in a letter to shareholders shortly afterward, group chairman Jean-Rene Fourtou and CEO Bernard Levy said discussions about potentially splitting up the business or selling off certain assets were “not taboo”.
In that same letter, Vivendi noted that strategy would be discussed at the annual meeting, originally set to take place in Corsica, attended by the group’s boards and heads of its separate divisions.
Vivendi posted a 13% fall in profits for the first quarter of 2012, partly attributable to the losses SFR has suffered since low-cost operator Free entered the market in January.
SFR’s newly-appointed CEO, Michael Coombes – formerly head of Vodafone’s European division – is set to start next month. The previous CEO, Frank Esser, left the company in March.
Vivendi took full control of SFR in 2011, paying €7.95bn to acquire Vodafone’s 44% stake.
