Vivendi has been considering its strategy and investment banks are preparing proposals for divestiture or restructuring to try and halt the plunge in its stock price, several sources have told Reuters.
The difficulties of SFR, the leading provider of liquidity, led the Board to revive the old debate about the relevance of a model combining media and telecoms and put under pressure its number one Jean-Bernard Levy.
Facing the bronca shareholders embittered by a share price at its lowest for nine years, President of the Supervisory Board Jean-Rene Fourtou promised last month that the conglomerate would not remain idly and that all subjects would be put on the table, no "taboo".
Jean-Bernard Levy told Reuters on his side to the group questioned constantly on optimizing its business portfolio.
"There is no doubt that they are in full introspection on what to do," said one investment banker. "Until now, the board supported management and strategy, but the situation becomes critical and there may be a split."
Investors who dream of a quick and radical, however, may have to be patient despite the excitement in the markets by the situation mentioned by Bloomberg for dismantling and the arrival of man in the capital stock shots, Vincent Bolloré.
The contractor, who is poised to sell its conglomerate channels Direct 8 Direct and Star in exchange for Vivendi shares, wants to be a long-term shareholder and looks forward to working with the council rather than to impose its views at the outset, according to two people familiar with the CEO of Bolloré.
Most importantly, the tandem-Fourtou Levy, who oversaw the reconstruction of Vivendi after the debacle of the Messier era in 2002, is still in command.
Under the leadership of two men, Vivendi has cleaned up its financial position, streamlined its structure by acquiring minority stakes and settled a series of disputes.
The group also made acquisitions including that of the fast-growing operator GVT and tried to create synergies between its divisions with mixed success, however.
BACK TO SQUARE ONE
"All these years later, it is quite ironic that the group returned to square one: the action is at its lowest, there is still no synergies between the different business and it will be even harder to sell assets whose value has declined, "said one former executive of the group.
In a letter to shareholders dated March 27, the two leaders again rejected the idea that Vivendi would be a collection of unrelated activities with each other while judging " excessive "the conglomerate discount applied to the title, estimated at 40% by Jean-Rene Fourtou.
The challenge now is whether the group, which has previously rejected the dismantling scenarios, could this time take the plunge and abandon its hybrid structure.
"We can probably 216,000 scenarios, I do not fit into one of the 216,000 scenarios," said Jean-Bernard Levy told Reuters when he was asked about this hypothesis.
A seminar with the direction in June will be an opportunity to discuss the strategy and scope of Vivendi but a spokesman said the group meeting was held annually for several years and it was unlikely that it leads to major announcements.
According to several sources familiar with the matter, no bank has so far been commissioned for a sale or restructuring.
In a note, credit analysts at Société Générale consider the hypothesis of "break-up" unlikely unless a departure of Jean-Bernard Levy under pressure because of the difficulties of SFR.
The action of Vivendi has lost over 30% since its acquisition in April 2011 of the total SFR against 7.95 billion euros, an operation expected to result in a boost for the stock market Title and a dividend increase.
The arrival nine months later Free on the mobile market, has destabilized the operator which provides for 2012 down 12 to 15% in operating profit . Vivendi cut its dividend and the difference between the total assets of the group and its market capitalization has increased.
The AIGUILLON BOLLORÉ
Jean-Bernard Levy took the reins of SFR directly before passing the baton to a new CEO in the summer, with the promise to "tighten the bolts" within which the subsidiary recovery is deemed crucial to right the course of the action and for his personal future, according to several sources.
In this context heckled, the group is studying its options, reported by observers and bankers who do not see much to fix.
"Everything is reviewed. When they write in their letter to shareholders that nothing is taboo, it is a call for bankers to offer ideas, "said a person familiar with the group ….
….. "Unfortunately, it's not as simple as what people think when you look at the structure of the group"
.
According to sources, banks are working on a script assignment of Morocco Telecom, whose margin was still 55% last year despite a drop in sales
. Vivendi could also relaunch the IPO of Canal + France initiated last year by its other shareholder Lagardère before be suspended or sell its 60% stake in the video game publisher Activision Blizzard, the U.S. side.
But the sale of Telecom Morocco, 30% owned by the Kingdom of Morocco, could face political issues, indicates the same person, adding that the operations which appear more affluent, as Activision, have little influence on the other hand on the vision of the market prospects of Vivendi.
Some investors are pinning their hopes on the arrival in the capital of Vincent Bolloré, reputedly close to Jean-Rene Fourtou who said he would be welcome to the board.
A source close to the entrepreneur Vincent Bolloré hopes to reach 5% of the combined effect of the sale of its DTT channels and purchasing title to market. Societe Generale has recently become the largest shareholder with 7.86% of the conglomerate's capital.
"The emergence of a shareholder can bring a little more pressure on management will be forced to be accountable," said Gilles Guibout, portfolio manager at ; AXA Investment Management.
At the head of a family group, the entrepreneur would not invest one billion euros in Vivendi without an idea in mind, argues one contributor.
Bank of Japan announced Friday a further easing of monetary policy, pledging one hand to increase its program of asset purchases of 10,000 billion yen (94 billion euros) and secondly to acquire government bonds of longer maturities.
Despite signs of growing a resumed third largest economy, Japan's central bank and takes measures to support activity for the second time in just over two months and displays its determination to fight against the phenomenon of deflation beating down the country for over ten years.
Economists had expected an increase in the program of asset purchases two times lower. The BoJ has also surprised by announcing that it would expand its purchases of riskier assets such as Exchange Traded Funds and REITs.
"The BoJ has a bit more than what we expected, then its decision is a surprise" said Masamichi Adachi, senior economist at JPMorgan Securities.
"The bank is trying to get the message that it supports the market and economic recovery, as it did in February. This is a step in the right direction and we believe that the BoJ should do more to encourage the economy. "
The BoJ's decision, taken unanimously, carries its asset purchase program to 40,000 billion yen. The rate remains unchanged in a range of zero to 0.1%.
Immediately after the decision of the BoJ, the yen fell against the dollar. He was subsequently erased its losses and, to 6:40 GMT, gaining more than 0.3% against the greenback and the euro.
The BoJ has estimated that it would not "too long" to reach its inflation target of 1%, which could dampen expectations of further aggressive monetary easing measures.
It also found more and more evident that the third world economy was on the road to recovery. A series of indicators released Friday abounded in his direction.
Japan's industrial production rose 1.0% in March, posting its largest gain in three months in favor of a stabilizing external demand and the reconstruction of areas hit the country ; es by the earthquake and tsunami a year ago.
Also in March, retail sales jumped 10.3% year on year, against a 9.8% increase expected by analysts, while household expenditure increased by 3 4% in real terms, after growing 2.3% in February.
The unemployment rate meanwhile remained steady last month at 4.5%.
Promise to close in 2010, the Bosch plant in Venissieux, a suburb of Lyon, rising from the ashes thanks to the manufacture of photovoltaic panels in the most modern and important production unit of this type in France.
The German group intends to make this site the bridgehead of photovoltaics for southern Europe and northern Africa, and a model of "French production" that is central the campaign in France.
After eight months of construction, the new production of photovoltaic modules from Bosch is being phased in and the 200 employees of this plant produce in full capacity by July, 2000 panels per day, or 600,000 modules per year.
"This corresponds to the consumption of 51.000 French households, "explains Jürgen Pressl, board member of Bosch Solar Energy
. The plant is yet act as industrial miracle …
…… In 2010, the Bosch plant in Venissieux was promised at the close. Specializing in the production of diesel injection pumps, she was condemned by a falling market.
With an investment of 25 million euros, the conversion of the site has saved 200 of the 450 jobs previously identified.
"The successful transformation of Venissieux is the result of an exemplary social dialogue, and unique German enough", Guy said Maugis, president of Robert Bosch France.
To switch to the manufacture of injection pumps to that of photovoltaic modules, French employees of Bosch had to go to Germany for training.
"I was immediately voluntary," said Christelle Trioulaise, 45, who is placed in quality control. She looks forward to working conditions, "more comfortable, quieter, more interesting as new".
"But above all I could keep my job, and that's the key," concluded the worker.
"MADE IN FRANCE"
The Bosch Group has installed the new production unit in the Lyon region, not by philanthropy but by strategy.
"The French market is very important to us and here we must propose the 'Made in France', we need to produce locally," said Axel Becker, who led the project to convert.
Jürgen Pressl also emphasizes the proximity to markets such as Italy, Spain, North Africa, who are "potential customers".
"Vénissieux must become the bridgehead for photovoltaic southern Europe and northern Africa," he said.
Bosch's objective of becoming the market leader in photovoltaics, renewable energy according to the German group is the trend of the future, the era of fossil fuels being in his past.
The group spent more than four billion euros for research and filed over 4,000 patents in 2011.
Yet its leaders recognize that on this intensely competitive market, the game is not won, and that investment is still far from profitable.
"The price war is exacerbated must pass some time, and ultimately, we think about winning a very high quality of our products," said Jürgen Pressl.
In 2011, Bosch Solar Energy has achieved a turnover of 800 million euros, down from the previous year due to falling prices for modules.
Strengthening the European firewall is essential before the International Monetary Fund's resources are strengthened, ministers agreed the G20 finance summit meeting in Mexico City, said the final communiqué issued ; Sunday.
The central bankers of the world reflected this weekend in how to avoid a spreading crisis of European sovereign debt to all of the e ; global economy, calling into question an already fragile growth.
By combining existing resources and new financing, they intend to bring to nearly 2,000 billion the firewall surrounding the euro area.
Countries in the euro area have planned to meet in March to discuss this issue. Some countries, like China or Japan, have found that the decision by the euro area itself to raise more funds would be "essential" before they decide to turn to provide more funds to the IMF.
Germany and other European countries pleaded for this contribution is described as "important".
The British Finance Minister George Osborne has also been tough. "We are ready to consider a strengthening of IMF resources, but only once we have seen the color of money in the euro area, and we have not seen" , he told Sky TV.
At their next meeting in April, the G20 agreed to agree on a financial firewall around 2,000 billion dollars (1.487 billion euros) to prevent European debt crisis from spreading and threatening the global recovery.
GERMANY MORE FLEXIBLE?
This would be the most ambitious effort since the financial crisis of 2009, when the G20 has reached 1,000 billion dollars to save the global economy.
For many partners in the euro area, it is indeed the first European leaders to implement the necessary means to control the risks of contagion from the debt crisis, for example by combining lending capacity of its two mechanisms of financial stability, the European Financial Stability Fund (EFSF) and the European Financial Stability Mechanism (MES ).
This would bring their firepower combined with some 750 billion euros. G20 countries would then be more inclined to answer the call of the IMF, who wants more than double its capacity to respond by raising $ 600 billion of additional resources.
Added together, all these measures would create a global financial firewalls of about 1,950 billion.
A government official close to German Chancellor Angela Merkel, however, said Sunday that the MES already had adequate funds and that Berlin did not see the utility of a combination of SS and EFSF.
In Mexico, however, the negotiators at the G20 summit have suggested a different story, that of Germany more flexible.
"Everyone in the euro area and even in the European Union is reasonably satisfied to see a combination of SS and EFSF, even Germany, but it is too early to say that we will decide at the EU summit in early March, "said Margrethe Vestager, Minister of Finance of Denmark, which currently chairs the European Union.
Unemployment continued to rise in January in France, according to figures released Friday by the Ministry of Labour and job center.
The number of job seekers in category A (those who have carried on any activity) increased by 13,400 (+0.5%) last month in France compared to the month of de December to $ 2,861,700. Over one year the increase stands at 6.2%.
Taking into account persons engaged in a Pool (Class B and C), the number of jobseekers rose by 0.1%, or 4,800 more people to reach 4,258,200 (+5.5% yoy).
With the overseas departments, the number of unemployed stood at 4,525,900, a figure significantly in two months of the first round of the presidential election.
Finance ministers of the euro area agreed by phone to abandon plans to meet Wednesday on the Greek case, announced the president of the Eurogroup Jean-Claude Juncker, adding that a further meeting would take place on February 20.
Jean-Claude Juncker originally called for a meeting of the Eurogroup in Brussels. He said he had changed his plans because he wanted to be assured of Greek political leaders that reforms would be implemented.
Antonis Samaras, the leader of the Greek conservative party New Democracy, has not provided support for writing new austerity measures negotiated with the "troika" of international creditors of Greece, said on Tuesday a source close to the talks.
"For now, Samaras has not submitted a letter of commitment, and this is a problem," the source told Reuters on condition of anonymity.
Government source, it was claimed in the evening it would be done on Wednesday morning.
George Papandreou, former prime minister and leader of the Socialist Party (PASOK), has meanwhile been given a signed undertaking by which he supports the measures adopted by the Greek parliament in Sunday night Monday.
Jean-Claude Juncker also discussed technical details remain to be clarified between Greece and the troika (EU, IMF and European Central Bank ).
JUNCKER WANTS OF WARRANTIES
Technical work is still needed in various fields between Greece and the Troika, in particular as regards the filling of the budget deficit of 325 million euros in 2012 and situation analysis of the debt, the statement of the Presidency of the Eurogroup.
"Moreover, I have not yet received the required assurances from the leaders of coalition parties on the Greek implementation of the program," added Jean-Claude Juncker.
"In this context, I decided to invite the ministers in a teleconference tomorrow to discuss outstanding issues and prepare for the regular meeting of the Eurogroup on Monday 20 February 2012 ".
After months of negotiations, the private creditors of Greece agreed to undergo a discount on the value of Greek bonds they hold in exchange new securities to maturity lengthened and a cash payment.
The release of new aid to Athens – from 130 billion euros – was submitted by the troika to the implementation of new austerity measures which the vote last weekend by Parliament provoked sometimes violent protests in Greece.
The text voted by 199 deputies out of 300, provides 3.3 billion savings through further cuts in wages and pensions and a wave of job cuts in the public public.
But 325 million are still missing and creditors of Athens require accurate accounts.
According to two authoritative sources, the government plans to reduce the defense budget of 125 million euros. The text adopted this Sunday already reduced budget of 300 million. For 200 million missing, Athens would consider accelerating the reduction of the payroll of the public.
The rating agency Standard & Poor's warned Wednesday that the sovereign ratings of the euro zone could face additional pressures in the case of a recession in the next year, as feared, many of the 17 countries using the currency unique.
The director of the sovereign rating S & P agency that has already withdrawn the United States their highest grade "triple A" last summer, said it would be difficult to avoid a recession in many countries in the euro area in 2012 if the government bond yields remain high and if the banks continue to reduce their balance sheets.
Eleven departments will experience from December the requirement for recipients of RSA to work seven hours a week. Explanations. EMPLOYEES ON A prepares the packages in a warehouse of the Food Bank in Strasbourg
During his visit to Bordeaux on the topic of social fraud, Tuesday, Nicolas Sarkozy announced that the government would try by the end of an obligation to work seven hours a week for RSA recipients. The trial balloon launched by Laurent Wauquiez spring has come into effect. The leader of the Social Right UMP, Minister of Higher Education, denounced in May the "cancer of the assistantship." Among his proposals to "treat this disease," he called to make the beneficiaries of RSA five hours of social work per week, for free.The idea has generated considerable controversy, but has found support among the electorate to the right.
Nicolas Sarkozy has instructed Marc-Philippe Daubresse to make proposals. The former minister of Active Solidarity, now Secretary General of the UMP, has taken over the idea of working a few hours each week recipients of the RSA, for a fee this time. And an objective "to offer a range of broader assisted contracts and respond to difficulties in accessing the labor market," said Marc-Philippe Daubresse. In six months, the UMP has made a major shift in meaning: it is no longer stigmatize the "profiteers" of national solidarity, but to sort of "homework" to "rights", according to the words of Nicolas Sarkozy on Tuesday.
Visa announced Wednesday that revenue growth had slowed and that the group had paid more promotional premiums to its customers, which has set back the title in after-hours trading despite a profit above expectations.
The world of credit cards reported that its revenues had increased by 2.6% in the fourth quarter of fiscal year compared to the previous or their smallest increase since the beginning of the year.
Premiums paid to customers totaled $ 576 million against 421 million a year earlier.
"The results are slightly disappointing," Judge Chris Brendler, an analyst at Stifel Nicolaus & Co.
The action Visa declined by 1.7% in after hours trading these ads.
The San Francisco-based group has reported a net profit of $ 880 million in the fourth quarter of fiscal year, or $ 1.27 per share of Class A, against 774 million or $ 1.06 per share a year before.
Analysts were expecting earnings per share of $ 1.25, according to Thomson Reuters I / B / E / S, but it was not immediately clear if this figure could be compared with that published by Visa.
The number of transactions increased by 9% over the same period last year to 13 billion. Volumes have increased them by 13% to 970 billion.
The group also said it expected 2012 net annual growth of around 10%.
Divergence of views between officials of the U.S. Federal Reserve monetary policy appeared to lead to light Monday, one calling for a further easing and the other suggesting instead that a tightening may be necessary.
Jeffrey Lacker, president of the Richmond Fed's reputation "hawk", noted that price pressures should be lower in the coming months with declining oil prices and other raw materials.
But he continues to believe that inflation remains a threat.
"In my opinion, do not put in place new support measures.It could even demonstrate that a withdrawal of support (provided by the Fed on the economy) will soon be necessary, "he said.
On the occasion of the rotation of members of the monetary policy of the Fed's Jeffrey Lacker have a vote in committee next year.
For his part, Charles Evans, president of the Chicago Fed considered a "dove," said that to reduce unemployment, the country would be willing to accept a temporary increase in inflationary pressures.
In his view, the Fed should increase the support for a weak U.S. economy by committing to maintain interest rates at zero until the unemployment rate falls below 7%.
Charles Evans currently has a right to vote at the Monetary Policy Committee of the Fed.
"Do not repeat the mistakes of the 1930s"
If such support does not produce the desired results quickly enough, the Fed will resume its share repurchase program of bonds to lower long-term rates, he said.
Unlike that of the European Central Bank, the mandate of the Fed puts the goal of full employment on the same level as that of price stability.
"Given that our performance is very poor in terms of our mandate on employment, we must be prepared to take the risk of a slight rise in inflation in the short term if it must be the consequence of a policy aimed at reducing unemployment, "said Charles Evans.
"Rather than fighting against the specter of inflation of the 1970s, I am more anxious not to repeat the mistakes of the 1930s," he said, referring to the drag on growth had been the monetary policy Fed during the Great Depression.
In the wake of two bond buyback programs, known as quantitative easing implemented to fight against the financial crisis of 2007-2009, the Fed continued to support the economy with the launch last month, a new program of $ 400 billion to increase the share of long-term securities in its portfolio of assets of 2,850 billion.(See)
This decision, known as "Operation Twist", was adopted despite the negative vote of three members of the Monetary Policy Committee, as the commitment made in August, to keep interest rates exceptionally low to mid-2013.
Jeffrey Lacker, the posting of such disagreements reflect the internal debate within the Fed does not mean a split in the authorities of the central bank.
However, Justice Charles Evans that calls for a monetary tightening by some members of the Fed undermine the effectiveness of measures taken by the central bank to support the economy.
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