Vivendi faces two new US investigations

French-American media group Vivendi Universal said today US authorities had begun two new investigations into the company.

French-American media group Vivendi Universal said today US authorities had begun two new investigations into the company.

In a brief statement, Vivendi said the US Attorney's office for the Southern District of New York had opened a preliminary criminal investigation into the company and was coordinating with the Securities and Exchange Commission's (SEC) Miami office, which has been conducting an informal inquiry.

Further details on the nature of the investigations were not yet available.

The investigations come as Vivendi struggles to persuade its lender banks to fund its move to control cash-rich 44-per cent owned telecoms group Cegetel, the object of a takeover bid by UK cellphone giant Vodafone.

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Vivendi is already the object of investigations by French bourse regulator COB and French justice officials, who are looking into whether the company issued misleading statements on its financial condition during the tenure of former chairman Mr Jean-Marie Messier.

Vivendi's new management team is trying to pick up the pieces, targeting asset sales of €12 billion over the next 18 months, while struggling to maintain control of its cash cow Cegetel.

On October 29th, a Paris prosecutor opened a preliminary inquiry into alleged balance sheet irregularities and misleading communications at the company during Mr Messier's rein.

That move followed a formal complaint by an association of small Vivendi shareholders who charged the group had issued "false and misleading information concerning its business and financial condition".