Vivendi Chief Financial Officer Philippe Capron told an earnings analyst conference today: “Clearly a breakup would lead to very great difficulty in apportioning of the debt. We don’t see how to keep quality ratings on both sides. A straight break up is not something we are contemplating for the time being.” In April, the breakup of its telecom and media assets to solve Vivendi’s slumping share price was reported under consideration despite what it might do to the company’s long-term debt rating. “Whatever we do will be driven in large part to make sure value is preserved for bondholders,” Capron said. The French media and telecommunications group announced cost-cutting after posting a 43% drop in second quarter net profit owing to higher taxes and a decline in the group’s core earnings. Vivendi said its net profit fell to 463 million euros ($580 million dollars) in the three-month period, on sales that slipped by 1.5 percent to 6.96 billion euros. “We are suffering from the price reset in the French mobile market,” Capron said. “We have to adapt to the new reality.” Vivendi shares showed a gain of 3.44 percent to 15.63 euros in morning trades on the Paris stock exchange, which was down by 0.20 percent overall.
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This article was printed from http://www.deadline.com/2012/08/slumping-vivendi-not-breaking-up-its-media-telecom-assets-now-cfo/
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