PARIS, July 23 (UPI) -- The embattled media giant Vivendi Universal announced plans Tuesday to restructure its French pay-TV station, Canal Plus, calming speculation that it would shed the money-losing channel altogether.
Under the reorganization plan, announced in a press release, the group would be renamed "Canal Plus France," with Vivendi retaining 49 percent ownership of the company.
But Vivendi also announced plans to sell stakes in Canal Plus, even as it vowed help the channel to "significantly reduce" its debts.
News of the restructuring was first reported by France's Le Figaro newspaper Monday, which reported three entities would be created within Canal Plus, separately grouping its local and international operations.
Speculation has been rife that Vivendi planned to break up Canal Plus, Europe's largest pay-TV group.
And indeed, Le Figaro also reported that the Italian affiliate of Canal Plus, Telepiu, would be transferred to Rupert Murdoch by the end of August.
The Vivendi announcement Tuesday made no mention of the details, beyond stating a Telepiu transfer "would be actively pursued."
The restructuring plan, presented by Vivendi's new head, Jean-Rene Fourtou, is aimed at bringing in more than $4 billion, the company said. The company is desperately seeking to drum up funds to address what Fourtou termed a "liquidity crisis."
The announcement marked the first step in ambitious plans to turn around the ailing multimedia giant which is struggling under $17 billion in debt.
Vivendi's charismatic and controversial head, Jean-Marie Messier, resigned from his post this summer, after losing support from his board.
Last week, the French securities regulator, the Commission des Operations de Bourse, opened an investigation into Vivendi's accounts following reports the company had tried unsuccessfully to inflate its 2001 accounts.
On Monday, another Vivendi branch, Vivendi Environnement SA, called for support from bondholders to separate itself financially from its ailing parent.
