Stephen Simpson, CFA
Mar. 23, 2015, 5:42 PM
- Following on the earlier report that Vivendi (OTCPK:VIVHY) is resisting its call to sell its music business, hedge fund P. Schoenfeld Asset Management is calling for €9B ($9.9B) in special dividends from the company.
- After that, Schoenfeld says, cash-rich but "significantly undervalued" Vivendi would still have €5B left for ample expansion.
- The fund is piloting a collision course with Vivendi chairman Vincent Bolloré at the April 17 annual meeting.
- Bolloré owns 8.2% of Vivendi's capital; while PSAM owns less than 1%, it plans a proxy fight.
- Vivendi didn't comment on this specific request, but it said last month it planned to return more than $6B to investors in the next couple of years, so the difference between the two may come down to pacing.
- Previously: Vivendi: No plans to sell music business (Mar. 23 2015)
Mar. 23, 2015, 10:30 AM
- Vivendi (OTCPK:VIVHY +1.9%) is sticking up for its music business, saying it's opposed to a sale and dismissing a winter request it got to do so from hedge fund P. Schoenfeld Asset Management.
- The comments come as the fund gets ready to press its case at Vivendi's annual meeting in April.
- "The management board opposes the dismantling of Vivendi and reaffirms its desire to build a Paris-based global industrial content and media group," Vivendi says, though it's gotten considerably more slender in recent years, confining its media business to Universal Music Group and pay-TV provider Canal Plus.
- Vivendi is flush with cash and plans to put €5.7B ($6.17B) into dividends and buybacks by mid-2017, but some minority shareholders are agitating for still more after Vivendi agreed to sell its remaining stake in French telecom SFR.
Jul. 22, 2013, 4:25 AM
Vivendi (VIVEF.PK) is reportedly expected to discuss plans at a board meeting today for Activision Blizzard (ATVI) to pay a special dividend of over $3B. With a 60% holding in the video-games company, Vivendi would receive $2B, although Activision would have to raise debt to pay for the dividend. Vivendi's directors will also talk about a sale of its controlling stake in in North African phone operator Maroc Telecom (MAOTF.PK) for about $5.5B plus debt to Emirates Telecom. The money will allow Vivendi to reduce its €13.19B debt and could presage a spin-off of its SFR French phone operator subsidiary.| Jul. 22, 2013, 4:25 AM