Vivendi to discuss Activision special dividend: WSJ
PARIS Vivendi (VIV.PA) may push for its Activision Blizzard (ATVI.O) video games division to pay a special dividend that would net the French group around $2 billion to help it cut its debt pile, the Wall Street Journal reported on Monday.
The board of Vivendi will discuss the move at a regular meeting on Monday and may press for the unit's own board members to approve it at a meeting later this week, the newspaper added.
Six of eleven Activision board members are from Vivendi group or its units.
Conglomerate Vivendi has been working on reducing its exposure to telecoms to focus more on its media businesses in the past year. It is in the advanced stages of selling its 53 percent stake in Maroc Telecom (IAM.CS) to Gulf operator Etisalat ETEL.AD.
The effort to access Activision's $4.3 billion in cash would help it cut debt at a time when its main profit driver, French telecom operator SFR, is suffering from competition.
Sealing both deals could pave the way for Vivendi to find a solution for SFR, which could be an initial public offering or splitting it off into a separate company sometime next year.
People familiar with the situation confirmed that Vivendi would hold its quarterly board meeting on Monday and that Activision and Maroc Telecom would be discussed.
Vivendi declined to comment on the report.
Vivendi shares were down 0.5 percent at 15.44 euros at 0747 GMT (3.45 a.m ET), while the French blue-chip CAC 40 index .FCHI was down 0.1 percent.
(Reporting by Leila Abboud and James Regan; Editing by Louise Heavens)
Next In Business News
VW says talks to end supplier dispute will resume on Monday
FRANKFURT Volkswagen is seeking a negotiated settlement with suppliers in a dispute over contracts that is halting production at some of its plants and talks will resume on Monday, the German carmaker said.
Fed guessing game moves up a gear as Yellen takes stage
MADRID Will they or won't they? The debate over whether the U.S. Federal Reserve is readying an interest rate hike will get its umpteenth airing over the coming week, with all eyes on Chair Janet Yellen to provide some clarity.
JPMorgan ends WaMu disputes with FDIC, to receive $645 million
JPMorgan Chase & Co on Friday said it will receive $645 million in a settlement of litigation with the Federal Deposit Insurance Corp and Deutsche Bank AG arising from its purchase of Washington Mutual Inc's banking operations during the financial crisis in 2008.