By Ruth Bender
PARIS--A U.S. activist fund has been seeking to challenge
Vivendi SA's strategy, the French company said Monday, highlighting
a growing malaise among minority shareholders over where group
chairman Vincent Bolloré is driving the media conglomerate.
Vivendi said it received a letter from U.S. hedge fund P
Schoenfeld Asset Management in December requesting the company sell
Universal Music Group.
Vivendi said it dismissed the request and continues to oppose
the idea of parting with its music business.
"The management board opposes the dismantling of Vivendi and
reaffirms its desire to build a Paris-based global industrial
content and media group," Vivendi said in a news release.
The comments come after the Financial Times reported late Sunday
that PSAM was preparing resolutions for Vivendi's annual general
meeting in April, urging the company to take actions to improve its
share price and pay a higher dividend.
Since asking Vivendi to sell Universal Music--one of the group's
two remaining assets--PSAM has made several other requests aimed at
raising shareholder returns, according to a person familiar with
the matter.
In its statement, Vivendi said the group would examine any new
requests from PSMA, which owns less than 1% of the group's
capital.
A spokesman for PSAM wasn't immediately available to
comment.
The pressure on Vivendi's chairman comes as the company stands
at a strategic crossroads. Mr. Bolloré is the crucial player in
defining Vivendi's future, The once-sprawling conglomerate has in
recent years sold off many assets, slimming down to two media
businesses: California-based Universal Music Group and French
pay-television provider Canal Plus Group.
Mr. Bolloré, who owns 8.2% of the Vivendi's capital, has said
little about how he plans to develop the company and how he intends
to use the company's rapidly growing cash pile, sparking some
frustration among minority shareholders.
Vivendi said in February that it will plow EUR5.7 billion ($6.17
billion) into dividends and share buybacks by mid-2017.
Some analysts have said they expected returns to be higher after
Vivendi agreed to sell its remaining stake in French telecom group
Numericable-SFR and as Vivendi management had stated that
acquisitions were possible--although only under "strict financial
discipline."
Vivendi said Monday that its planned shareholder returns are
"well balanced."
Vivendi shareholders have until the end of Monday to submit any
resolutions for the group's annual meeting on April 17, according
to a proxy filing.
Write to Ruth Bender at Ruth.Bender@wsj.com
Access Investor Kit for Vivendi SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=FR0000127771
Access Investor Kit for Vivendi SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US92852T2015
Subscribe to WSJ: http://online.wsj.com?mod=djnwires