The investigation into the financial affairs of Vivendi Universal
during Jean-Marie Messier's tenure as chairman and chief executive
officer took a new turn yesterday as authorities searched the
group's headquarters in Paris, as well as offices at Cégétel, its
telecommunications affiliate.
The home of the ex-CEO was also searched, conducted by the
financial arm of the public prosecutor's office. Messier was ousted
in July in the middle of enquiries about the company's accounting
and financial status.
In a statement issued yesterday, Vivendi confirmed its headquarters
were searched, and that it is co-operating with the
authorities.
The French case revolves around charges that Vivendi published
false balance sheets regarding its 2000 and 2001 financial years,
and released erroneous or falsified information to financial
markets during 2001 and 2002.
French authorities will soon have at their disposal a detailed
report prepared by Paris Bourse regulatory authority, the
Commission des Opérations de Bourse.
Vivendi is also the subject of several inquiries in the US. Both
the US Securities and Exchange Commission and the US Attorney's
office for the Southern District of New York are looking into the
company's financial dealings. Adding to the company's woes are
shareholder lawsuits in both the US and France.
Vivendi racked up huge losses in its efforts to transform itself
from a utilities company into a media giant. For the third quarter,
it reported a net loss of €1.23bn (£790m) to 30 September.
To reduce its debt, the company is now in the process of selling
off a variety of assets, including entertainment units.