Vivendi Plans Extra Payout in Compromise With Activist Investor
2015-04-08 19:29:47.433 GMT
By Rudy Ruitenberg and Marie Mawad
(Bloomberg) -- Vivendi SA agreed to pay an additional
dividend of 2 euros ($2.16) a share to accommodate demands by
Wall Street activist Peter Schoenfeld for bigger returns.
The Paris-based owner of France’s biggest pay-TV company
and the world’s largest music company said in an e-mailed
statement it will consider further payouts should its
acquisition strategy require less cash than expected over the
next two years.
The compromise with Schoenfeld ends a more than two-week
battle between the activist investor and Vivendi over how the
company should spend its cash pile, amassed from selling nearly
$30 billion of assets. Vivendi is helmed by billionaire
businessman Vincent Bollore, the company’s chairman and biggest
shareholder.
“Vivendi’s management board decided that, in order to
reach consensus with some minority shareholders, payouts to
shareholders could be accelerated,” the company said.
As the company prepares for its annual shareholder meeting
on April 17, Schoenfeld had argued management isn’t handing
enough money to shareholders, and filed a resolution for a
bigger dividend. The founder of P. Schoenfeld Asset Management
called for higher returns from Vivendi’s 18 billion-euro cash
pile, demanding 9 billion euros in payouts and the sale of the
Universal Music Group unit.
Following meetings in recent days, PSAM told management it
accepts the company’s strategy of building on the assets of
Universal Music and TV unit Canal Plus, and withdraws its draft
resolutions, Vivendi said.
Vivendi has been seeking acquisitions to add to its
television and music assets and build a bigger media business.
The company this week disclosed exclusive talks to buy Orange
SA’s Internet video service Dailymotion, a rival to YouTube.
Vivendi’s February proposal to return 5.7 billion euros
through dividends and buybacks was lower than analysts expected,
and repurchases were capped to shares priced at a maximum of 20
euros each -- the stock has been above that price since January.
The additional payouts will be made as a 1-euro dividend in
the fourth quarter of this year and another in the first quarter
of 2016, raising the total return to shareholders to 6.75
billion euros, Vivendi said.
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To contact the reporters on this story:
Rudy Ruitenberg in Paris at +33-1-5365-5039 or
rruitenberg@bloomberg.net;
Marie Mawad in Paris at +33-1-5530-6290 or
mmawad1@bloomberg.net
To contact the editors responsible for this story:
Lynn Thomasson at +44-20-3525-9815 or
lthomasson@bloomberg.net
James Kraus, Jim Silver
2015-04-08 19:29:47.433 GMT
By Rudy Ruitenberg and Marie Mawad
(Bloomberg) -- Vivendi SA agreed to pay an additional
dividend of 2 euros ($2.16) a share to accommodate demands by
Wall Street activist Peter Schoenfeld for bigger returns.
The Paris-based owner of France’s biggest pay-TV company
and the world’s largest music company said in an e-mailed
statement it will consider further payouts should its
acquisition strategy require less cash than expected over the
next two years.
The compromise with Schoenfeld ends a more than two-week
battle between the activist investor and Vivendi over how the
company should spend its cash pile, amassed from selling nearly
$30 billion of assets. Vivendi is helmed by billionaire
businessman Vincent Bollore, the company’s chairman and biggest
shareholder.
“Vivendi’s management board decided that, in order to
reach consensus with some minority shareholders, payouts to
shareholders could be accelerated,” the company said.
As the company prepares for its annual shareholder meeting
on April 17, Schoenfeld had argued management isn’t handing
enough money to shareholders, and filed a resolution for a
bigger dividend. The founder of P. Schoenfeld Asset Management
called for higher returns from Vivendi’s 18 billion-euro cash
pile, demanding 9 billion euros in payouts and the sale of the
Universal Music Group unit.
Following meetings in recent days, PSAM told management it
accepts the company’s strategy of building on the assets of
Universal Music and TV unit Canal Plus, and withdraws its draft
resolutions, Vivendi said.
Vivendi has been seeking acquisitions to add to its
television and music assets and build a bigger media business.
The company this week disclosed exclusive talks to buy Orange
SA’s Internet video service Dailymotion, a rival to YouTube.
Vivendi’s February proposal to return 5.7 billion euros
through dividends and buybacks was lower than analysts expected,
and repurchases were capped to shares priced at a maximum of 20
euros each -- the stock has been above that price since January.
The additional payouts will be made as a 1-euro dividend in
the fourth quarter of this year and another in the first quarter
of 2016, raising the total return to shareholders to 6.75
billion euros, Vivendi said.
For Related News and Information:
Developed Markets View: DMMV <GO>
World Stock Indexes: WEI <GO>
Stoxx 600 Market Map: SXXP <Index> IMAP <GO>
Top Stories on Stocks: TOP STK <GO>
Equity Screening: EQS <GO>
To contact the reporters on this story:
Rudy Ruitenberg in Paris at +33-1-5365-5039 or
rruitenberg@bloomberg.net;
Marie Mawad in Paris at +33-1-5530-6290 or
mmawad1@bloomberg.net
To contact the editors responsible for this story:
Lynn Thomasson at +44-20-3525-9815 or
lthomasson@bloomberg.net
James Kraus, Jim Silver