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Last Updated: Monday, 15 September, 2003, 21:58 GMT 22:58 UK
Vivendi ex-chief claims pay victory
Jean-Marie Messier
Mr Messier claims his management acted "scrupulously"
A court has ordered Vivendi Universal to pay 20.5m euros (�14m; $23m) to Jean-Marie Messier, the former boss many blame for dragging the French media group into its current financial plight.

The New York state court order contradicts an earlier French ruling, and comes despite fierce resistance from Vivendi, which hoped to avoid paying Mr Messier anything.

The decision came as French market regulator Commission des Operations de Bourse (COB) completed a 15-month probe into allegations that the Messier-era Vivendi misled shareholders about its financial health.

Details of the probe will not be published unless and until French prosecutors decide to proceed against the firm.

But Mr Messier already says that he has been cleared of any wrongdoing.

Termination tussle

The court judgement revolved around whether Mr Messier's "termination agreement" had been applicable to the circumstances of his removal.

The court found that it had been valid, and that Vivendi had violated its obligations by failing to pay.

Vivendi had argued that the compensation agreement was illegal because it violated an aspect of French corporate law, and had had a judgement to that effect upheld in France.

The company's new management, headed by Jean-Rene Fourtou, resents paying money to the man who oversaw Vivendi's dramatic collapse.

Under his guidance, what had been a cautious French utility embarked on a dramatic spate on media and entertainment acquisitions, racking up enormous debts in the process.

Mr Fourtou has launched a sweeping programme of cost-cuts and sales, most notably a recent agreement to sell much of its showbusiness assets to US media network NBC.

Examining the past

Although few deny that Vivendi's strategy under Mr Messier was misguided, there has been sharp disagreement over precisely how ethically the firm behaved.

COB has been investigating allegations that Vivendi gave false and misleading information to shareholders during Mr Messier's tenure.

There have also been questions asked about its accounting practices, as well as accusations of insider trading.

Mr Messier told business newspaper Les Echos that he new the COB report had cleared him, and that the firm was always "scrupulous" in its observance of the regulations.

Whatever the outcome of the COB's investigation, Vivendi is also facing probes by the US Securities and Exchange Commission, and the US attorney's office for the Southern District of New York.




SEE ALSO:
NBC wins Vivendi battle
02 Sep 03  |  Business
Universal names two bidders
26 Aug 03  |  Business
Bronfman 'closes Vivendi gap'
24 Aug 03  |  Business
Final deadline for Universal bids
18 Aug 03  |  Business
US TV firm shuns Vivendi
14 Aug 03  |  Business
Vivendi fails to lure MGM
30 Jul 03  |  Business
Vivendi narrows list of bidders
01 Jul 03  |  Business


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