Vevendi Dismisses Request To Sell UMG

A U.S. activist fund has been seeking to challenge Vivendi SA’s strategy, the French company said Monday, highlighting a growing malaise among minority shareholders over where group chairman Vincent Bolloré is driving the media conglomerate.

The Wall Street Journal reports Vivendi received a letter from U.S. hedge fund P Schoenfeld Asset Management in December requesting the company sell Universal Music Group.

Vivendi said it dismissed the request and continues to oppose the idea of parting with its music business.

“The management board opposes the dismantling of Vivendi and reaffirms its desire to build a Paris-based global industrial content and media group,” Vivendi said in a news release.

The comments come after the Financial Times reported late Sunday that PSAM was preparing resolutions for Vivendi’s annual general meeting in April, urging the company to take actions to improve its share price and pay a higher dividend.

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