Vivendi ponders demerger of Universal - report

French media giant Vivendi Universal will consider an initial public offering to spin off its US-based entertainment assets when…

French media giant Vivendi Universal will consider an initial public offering to spin off its US-based entertainment assets when its board meets in September, the Financial Timesreported this morning.

Measures including a possible IPO of the group's 86 per cent holding of entertainment unit Vivendi Universal Entertainment (VUE) would be considered by the group's strategic committee, the newspaper said.

A person familiar with the company's strategic review said it had valued its Universal Studios unit, the main asset of VUE, at $5.1 billion, the FT reported.

Selling off Universal would amount to a reversal of the strategy of former CEO Jean-Marie Messier, who turned the staid French water company into a global media giant by acquiring one of the largest Hollywood studios and other assets.

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Vivendi's shares closed in Paris at 9.30 euros on Friday, down 12.26 per cent. The company's shares have lost more than 82 per cent of their value in the past year.