French media group Vivendi Universal is in new turmoil today with the resignation of one time golden boy Mr Jean-Marie Messier from the top job. Shares plunged on a bond downgrading to "junk" status.
Several analysts said that speculation was rife about disposal of parts of the business, with key assets being retained in French hands.
Investors who were thrown a lifeline yesterday as the shares rose 9.3 per cent in anticipation of Mr Messier's resignation and asset sales, watched helplessly as a downgrade by Moody's credit rating agency of the company's long term debt to "junk" or high risk status, led to the shares diving by 15.69 per cent to €20.15.
The board of Vivendi Universal is due to meet tomorrow to discuss Mr Messier's regsignation and successor.
The vice president of the supervisory board of pharmaceutical group Aventis, Mr Jean-Rene Fourtou, is tipped as a front runner for Mr Messier's job but is by no means certain to get it.
Reacting to media speculation that Vivendi Universal is likely to be broken up, French junior Industry Minister Ms Nicole Fontaine said such a move was not inevitable.
Asked if Mr Messier's successor could expect the French state or banks to wipe out huge debt carried by Vivendi Universal, she said: "It will not be up to the government to tell Jean-Rene Fourtou what he must do if he is appointed."
AFP