Edgar Bronfman Jr: Eyeing Vivendi's US assets

Vivendi said Mr Bronfman Junior and his father, Edgar M. Bronfman, had stepped down from the company's board while they discussed the deal with potential backers.

The Bronfman-led consortium could include US pay TV service Cablevision Systems as well as private equity investors.

The news triggered a sharp rally in Vivendi shares, lifting them 5.8% to 14.70 euros by the close.

Winding down

The bid, if successful, would return Universal Studios and the Universal Music Group to the Bronfman family, which sold them to Vivendi three years ago in return for a stake in the company and a seat on its board of directors.

It would also bring to a close a colourful chapter in Vivendi's 150-year history during which it transformed itself from a staid French water utility into a global media and telecoms empire.

The company's dramatic makeover was masterminded by former chief executive Jean Marie Messier, who wanted to create a transatlantic media giant to rival AOL Time Warner.

But Mr Messier was forced to step down last year when huge debts built up to fund a series of expensive acquisitions brought Vivendi close to bankruptcy last year.

Debt pressure

Vivendi's financial woes have wiped out much of its market value, sharply reducing the value of the Bronfman family's stake in the firm.

Mr Messier's successor, Jean Rene Fourtou, put the company's entertainment assets up for sale earlier this year as part of a strategy to reduce the company's debt mountain.

Mr Fourtou is planning to re-focus the firm on telecommunications, reducing its media interests to French pay TV and film business Canal +.