Vivendi CEO Says Time Is Right to Sell Stake in UMG
November 16 2018 - 9:21AM
Dow Jones News
By Patrick Costello
BARCELONA--Vivendi SA's (VIV.FR) chief executive defended the
French media company's decision to seek a buyer for a stake in its
Universal Music Group subsidiary, saying the time was right to
consider divesting part of UMG.
"The momentum has been created," Arnaud de Puyfontaine said
Friday at Morgan Stanley's telecom-and-media conference in
Barcelona. He said UMG and the music industry have undergone a
recovery over the past few years.
Still, Vivendi is in no rush to sell and is focused instead on
finding a partner to help "crystallize" UMG's value, he said.
"We will have a floor price below which we won't proceed with
such a proposition," Mr. de Puyfontaine said, adding that a
potential buyer's geographical-and-technological approach also
merits consideration.
Mr. de Puyfontaine said Vivendi would remain a shareholder in
Telecom Italia SpA (TIT.MI) following the ouster of Amos Genish as
chief executive this week and news of a hefty writedown at the
company, but he called the situation at Telecom Italia
worrying.
"Telecom Italia has great potential and Italy is a part of the
Vivendi strategy," he said.
Vivendi, Telecom Italia's largest shareholder, has been locked
in a struggle for influence at the company with activist investor
Elliott Management Corp. since earlier this year.
Read more about the imbroglio surrounding Telecom Italia at
https://on.wsj.com/2JndT7q (WSJ paywall) or https://bit.ly/2DsU4e6
(NewsPlus).
Write to Patrick Costello at patrick.costello@dowjones.com
(END) Dow Jones Newswires
November 16, 2018 09:06 ET (14:06 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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