By Sylvie Dale, Online Editor
July 5, 2002 -- Vivendi Universal (VU) SA's board on Wednesday elected Rene Fourtou as Chairman and CEO of the entertainment conglomerate, replacing Jean-Marie Messier who agreed to leave earlier in the week.
Fourtou is a former vice chairman of the supervisory board of Aventis SA.
Two other new directors also were chosen: Claude Bebear, Chairman of the Supervisory Board of AXA, replaces Jean-Louis Beffa; and Gerard Kleisterlee, CEO of Philips, replaces Philippe Foriel-Destezet.
These new elections cover the remaining term of office of the directors who have been replaced.
The Board of Directors also decided unanimously to:
* create a financial committee chaired by Claude Bebear and a strategy committee to be headed by Henri Lachmann,
* give highest priority to creating financial transparency and resolving short term financing issues.
Following the Board meeting, Jean-Rene Fourtou said:
"In the next two weeks, all possible measures will be taken to improve the situation, particularly in terms of the short-term cash position. I have every confidence that the company has the strengths to address its liquidity issues and to find the appropriate solutions in the immediate term.
"In addition, a financial and strategic diagnosis will be made in under three months. Two committees have been set up to carry out this assignment within the Board of Directors. In addition, two working groups comprising people from inside and outside the company will be created. Their mission will be to prepare the work and decisions of the Board of Directors.
"The Board of Directors and all of the company employees remain fully prepared to do their utmost to ensure the continued strengths of our operations. Vivendi Universal has everything it needs to be optimistic about the future, as we begin to restore confidence and health to our company."
VU announced the changes as part of a sweeping realignment after a rocky year in which the company's shares lost 76% of their value on the Paris Stock Exchange.
The VU board also announced it would focus on addressing its short-term cash problem and deal with its heavy debts, which were accumulated as Messier built up the utilities company into a media and entertainment giant.
Following the announcements, VU's stock fell to a new low of €13.90 on the Paris stock market.
Fourtou is expected to completely restructure the company, selling off major assets and possibly splitting off the U.S. -based entertainment operations into a separate company.
For more information, visit the company's web site: http://www.vivendi.com.
