Vivendi faces US criminal probe

The US Attorney's office for the southern district of New York and the Securities and Exchange Commission's Miami office have separately been carrying out inquiries, Vivendi said in a statement.

But the company refused to comment on the content of any criminal proceedings, saying only that the two lines of inquiry were likely to be combined.

In France, Vivendi has been investigated by the stock exchange regulator and the Paris prosecutor, after shareholder complaints that, under the firm's former chairman Jean-Marie Messier, false financial information was released.

Mr Messier was replaced in July by Jean-Rene Fourtou, who is struggling to cope with the firm's heavy debt burden, at the same time as dealing with the various allegations of sharp practice that have beset the firm this year.

Other business

The markets reacted calmly to the news.

"The complaints don't have anything to do with the current leadership," said Patrice Lambert de Diesbach, CIC Securities analyst.

In a generally rising market, Vivendi shares were up 3% after the announcement, though it then slipped to end 1.87% lower.

Investors are currently more concerned over the strategic direction of the firm, which is currently battling to secure control of Cegetel, a profitable telecoms venture that it part-owns.

The need to raise funds for the purchase of Cegetel shares, combined with the company's already heavy debts, have brought it to a financial crunch, forcing it possibly to sell off much of its traditional businesses, which include waste and water.