Vivendi ex-chief held in fraud probe

JEAN-MARIE Messier, the former chairman of media conglomerate Vivendi Universal, was today being questioned by French police investigating claims of stock market manipulation, diffusing false financial information and insider trading.

The police are inquiring into events during his chairmanship of the group from which he was ousted two years ago.

Guillaume Hannezo, finance director under Messier, was earlier this month charged with market manipulation, diffusing false information and insider dealing.

Former treasurer Hubert Dupont-Lhotelain and his deputy, FranÁois Blondet, are also facing charges, as are Philippe Guez, a former chairman of defunct Deutsche Bank subsidiary Deutsche Equities.

The investigation was launched after a complaint by French small investors' organisation Appac. Part of the probe centres on a e1.7bn (£1.2bn) share buyback carried out by Vivendi in 2001 and handled by Deutsche Bank.

The buyback contravened French market regulations because it was carried out less than 15 days before publication of its first-half results on 25 September.

The false financial information allegation is understood to relate to the accounting treatment of subsidiaries Cegetel, Maroc TÈlÈcom and Polish phone operator Elektrim. The insider dealing charge against Hannezo relates to the sale of Vivendi shares in December 2001 at a profit of e1.3m.