New man set to take Vivendi helm

THE board of troubled French-American media conglomerate Vivendi Universal was meeting in Paris this afternoon to confirm the appointment of Jean-René Fourtou as chairman. Fourtou, 62, deputy chairman of French-German chemicals group Aventis, will replace Jean-Marie Messier.

Fourtou will take charge of talks already under way to secure between e2bn (£1.3bn) and e3bn to tide the group over an estimated e3.1bn liquidity shortfall.

Michel Pébereau, the chairman of bank BNP Paribas which is one of Vivendi's leading creditors, moved to quell investors' fears by saying the company 'is nowhere near a situation where its net assets are exceeded by its liabilities'.

Rival media group News Corp, meanwhile, said it had reduced its e1.5 bn bid for Vivendi's Italian pay-TV operation Telepiu, apparently by a third. With the break-up value of Vivendi now exceeding its market capitalisation, early disposals are expected.

Shares in French electronics group Alcatel were suspended after they fell 19% to e5.47 amid suggestions that operating losses this year could exceed e600m and that credit rating agencies might downgrade the company.

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