Vivendi Chairman Gets Double Voting Rights

PARIS-- Vivendi SA chairman and its largest shareholder, Vincent Bolloré, scored himself double voting rights at a shareholder meeting Friday, allowing the French billionaire more power over deciding the company's future.

Vivendi shareholders at the group's annual meeting backed a French law that gives shareholders double voting rights for stock held for two years or more, a move designed to encourage long-term investment.

A group of minority shareholders representing roughly 2% of the company's capital had added a resolution to the meeting agenda a few weeks ago, proposing to maintain a one-share, one-vote principle. The new French law, dubbed Florange, can only be overruled if such a resolution is accepted.

With the backing of shareholders, Mr. Bolloré will have greater leeway in steering the future of Vivendi as he will hold a significantly larger share of voting rights than the capital stake he owns.

The French investor, who entered Vivendi's capital in 2012 and took over as chairman in June last year, has over the past six weeks nearly tripled his stake in the group to 14.5%.

Ahead of the vote, Mr. Bolloré called on shareholders to vote against the resolution, arguing that the voting change will allow Vivendi to be more agile in pursuing its development.

Mr. Bolloré, presiding over his first annual meeting as chairman, also called on investors to be patient as the French media group works toward building a new global content company.

"To build Vivendi, we need time and money," Mr. Bolloré said.

The shareholder meeting comes after a tumultuous month for Vivendi following criticism from a U.S. hedge fund that pushed the company to agree to raise the amount of money it will return to shareholders.

Investors continue to wonder where the owner of Universal Music and French pay TV Canal Plus is heading and how he will use the large cash pile the company has accumulated from selling off many assets over the past years.

Write to Ruth Bender at [e-mail]

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