By Sam Schechner
PARIS-- Vivendi SA said it will propose an additional dividend
of EUR2 a share, boosting its cash return to shareholders as part
of an agreement to quell a public spat with a minority shareholder
ahead of the media conglomerate's annual meeting.
Vivendi and U.S. hedge fund P. Schoenfeld Asset Management LP
said Wednesday that they have in recent days struck a deal to end
their public feud, with Vivendi promising new dividends that will
push Vivendi's overall cash return to shareholders to EUR6.75
billion.
In return, PSAM has agreed to withdraw two resolutions the
company had proposed to force Vivendi to pay out EUR9 billion to
shareholders, the two companies said.
The agreement puts an end to a battle that broke out last month,
over what Vivendi should do with the roughly 10 billion euros in
will have on its balance sheet when it completes a recent spate of
recent asset sales. In the last two years, Vivendi has sold off
assets that accounted for more than half of its revenue, including
videogames maker Activision Blizzard and telecommunications
companies in France and Morocco--leaving it focused on media.
The French group's chairman and single largest shareholder,
Vincent Bolloré--who has a reputation in France for being a savvy
investor but also tightly controlling companies he gets involved
in--has said little about his plans, besides pledging to create
more synergies between the units and building a France-based global
media group.
In recent weeks, PSAM has said that Vivendi lacked a strategy,
and should instead return cash to shareholders. On Wednesday,
however, PSAM said it endorsed the company's growth strategy when
combined with the new dividends.
"Mr. Bolloré has demonstrated his sensitivity and willingness to
respond to shareholder concerns," the firm said in a statement.
As part of the deal Vivendi will propose the new dividend in a
shareholder meeting after it completes all of its pending sales,
including its telecommunications company in Brazil and its
remaining stake in French telecommunications operator SFR.
If approved, it will be paid in two tranches, one in the fourth
quarter of 2015 and the other in the first quarter of 2016.
Write to Sam Schechner at sam.schechner@wsj.com
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