Fallen media king Mr Jean-Marie Messier clung to his board seat at Vivendi Environnement yesterday but was forced to relinquish the chairmanship to his successor at debt-laden parent media group Vivendi Universal.
In the latest bizarre twist to the career of a man who a year ago seemed to have the Midas touch, Mr Messier was sacked for the second time in three months as chairman but this time stayed on the board as investors drove the unit's shares to record lows.
"I am staying on the board," a sun-tanned and smiling Mr Messier said as he left the headquarters of Vivendi Environnement.
His decision to attend is an embarrassment to Vivendi just two days before its new management unveils a strategy designed to shed massive debts accumulated during the Messier era.
Mr Jean-Rene Fourtou, the ex-pharmaceuticals boss drafted in to replace Mr Messier at parent Vivendi Universal, is expected to keep Messier's major investments in Universal Studios and music labels and boost its telecoms exposure while quitting utilities.
In a break from Messier's strategy, Fourtou is also selling off its publishing division.
Speaking to reporters after the Vivendi Environnement board meeting yesterday, Mr Fourtou said he had replaced Mr Messier as chairman of the world's largest water and sewage company.
A boardroom revolt cost Mr Messier his job at parent Vivendi Universal in early July after he ran up €20 billion of debt, oversaw a precipitous drop in the firm's share price and left the French-American media giant staring at a potential cash crisis.
Now Mr Fourtou is considering selling Vivendi Universal's stake in Vivendi Environnement to help halve the Messier-era debts and shore up the parent firm's "junk" or high-risk credit rating.
Shares in Vivendi Environnement fell up to 13 per cent in a bleak market, before recovering to close down 6.8 per cent at €19.02.
Vivendi Universal fell 7 per cent to €12.05. Vivendi's 40.8 per cent stake in Vivendi Environnement is worth €2.7 billion based on current market prices.
The parent firm has promised to reduce debt by €10 billion over two years. - (Reuters)
