Date: 15th November 2000

Vivendi Chief Cutting Ties With News Corp


Vivendi, the French media and utility company that is acquiring Seagram, is planning to dispose of its 22.7-percent stake in BSkyB, which is controlled by Rupert Murdoch's News Corp, the London Financial Times reported on its Web site Tuesday.

Vivendi Chairman Jean-Marie Messier dismissed widespread reports that Vivendi planned to swap its stake in BSkyB for a stake in Sky Global Networks, a spin-off of News Corp's interests in all of its satellite operations worldwide, including BSkyB.

He said that he plans "to find either a straight buyer or core asset swapper," noting that he would not attempt to sell the stock in the open market. He added: "Being an active partner of Murdoch is not easy." [The current (Nov. 13) edition of Red Herring includes a profile of Messier in which he recalls receiving a three-word note from Murdoch after announcing the Seagram deal: "You've got guts." Messier told the magazine that he regarded the note more as a warning than a compliment.]

Source: Studio Briefing