Vivendi SA Chief Executive Officer Gains Ownership of the Biggest Cash Cow
Despite the fact that the company Vivendi has not made any major external acquisition since late 2009, it has stirred everyone with its 7.95 billion-euro deal to buyout SFR, which will give it total ownership of the companyâ€™s cash cow. This is said to be a move by the company which has been in process over a decade to restore the French companyâ€™s stability after the leadership of Messierâ€™s messy.
However, the CEO of Vivendi, Jean-Bernard Levy, has stated that the SFR deal will enable a major increase in the companyâ€™s net adjusted income which will also increase the dividend of their shareholders.
Moreover ,the shares of Vivendi is said to have increased by 1.7% in Paris and 0.7% higher at 20.65 Euros, while Vodafone which plans to use 4 billion pounds to buy its shares back, increased by 2.1% in London. This for a matured Telecom company has been reported to be too high. Also, the SFR buyout will be founded by the $5.8 billion sale in 2010 of Vivendiâ€™s stake in the entertainment group NBC Universal to General Electric co. which is now Hollywood and was initiated by Messierâ€™s messy