Vivendi Universal: In a Strategic Flux

The company's financial troubles were aggravated by Messier's statements in the French media suggesting that the 'French Cultural Exception was dead.' This sent shock waves throughout France since the concept of 'Cultural Exception' was very dear to the French people . Messier's statements were seen as an attempt to limit/stop Canal Plus' association with the French film industry. Since Canal Plus was a key player in shaping the French film industry over the years (by financing movies as well as by buying their broadcasting rights), Messier's stand was unacceptable to many French nationals. Criticism of Messier intensified when he sacked Pierre Lescure, the popular CEO of the loss-making Canal Plus...

The company's new chairman Jean-Rene Fourtou (Fourtou), former deputy Chairman of Aventis drugs company, began a major restructuring of the group's businesses. Fourtou appointed Goldman Sachs Bank to monitor the company's worsening cash flow problems. He began discussions with VU's creditors to plan out new credit facilities. Fourtou also entered into negotiations with two banks, Société Générale and BNP Paribas, to obtain new loans for the company. The company had also reportedly approached other institutions like Rothschild, Citigroup's Salomon Smith Barney, Lehman Brothers Holdings, Deutsche Bank, Credit Suisse First Boston, JP Morgan Chase, Merrill Lynch, Morgan Stanley and UBS Warburg to help it restructure its debts...