Vivendi soars on new management

Messier is reported to have walked away with $20 million

PARIS, France (CNN) -- Vivendi Universal's stock, which has fallen about 80 percent this year, soared after a group of French heavyweight executives seized power of the world's second-largest media group.

Vivendi (PEX), home to Hollywood's Universal Studios and Universal music labels, appointed Jean-Rene Fourtou as the new chief executive after a boardroom coup ousted Jean-Marie Messier over his reign witnessed a huge build up in debts and slumping stock.

Fourtou warned that the Franco-American conglomerate's cash position was "stretched" and said the company was in talks with banks to secure fresh lending. But analysts said the company would have little problem winning back the support of banks.

"We believe the initial reluctance by the banks to provide further financing was motivated by a desire to secure Messier's removal as CEO and that support will return," analysts at Merrill Lynch wrote in a note to investors.

VIDEO Jim Boulden looks at the vision that drove Messier    MORE STORIES • Messier: Threat to French cutlure?  • Vivendi posts $11.8B loss  • Vivendi sells more utility shares  • Vivendi sells TV stake to Telenor  • Murdoch in $1bn Vivendi deal  • $5 million bonus for Vivendi chief    RESOURCES • Vivendi Universal: Business breakdown     QUICKVOTE Can Fourtou restore Vivendi's fortunes? Yes No View Results

The company's stock rose 15 percent to 15.96 euros in early Paris trading on Thursday. Vivendi dived 22 percent to close at 13.90 euros on Wednesday, slashing 15 billion euros of the company's market value.

Vivendi's biggest lenders, BNP Paribas, stepped in to calm investors fears that the company was not close to collapse because of its financial position.

"(Vivendi) is not in any shape or form facing a solvency crisis which would imply its net assets were less than its net debt,'' said Michel Pebereau, chairman of BNP Paris, France's biggest listed bank.

The Franco-American conglomerate said it was in talks with it creditor banks to cover its short-term needs. Its needs between 2 billion euros and 3 billion euros to tide it over, Reuters said.

The board of Vivendi, in a bid to firm up support for among the French establishment and shareholders, named Axa insurance boss Claude Bebear to head the finance committee. Bebear was the driving force behind Messier's ouster.

Gerard Kleisterlee, the chief executive of Philips Electronics -- the second largest Vivendi shareholder, was also appointed to the board and Schneider Electric chief Henri Lachmann will head the new strategy committee.

Analysts now expect the new management to break up the company to pay off some of the company's 19 billion euro ($18.6 billion) debt Messier landed Vivendi with as he went on an acquisition spree to turn the 150-year-old water utility into a media concern to rival the likes of News Corp, Disney and AOL Time Warner, the parent of CNN.

"A formal strategic review will be undertaken, which could result in the French assets beings sold (Canal+ and Cegetel), and the entertainment assets (Film and Music), which we believe could potentially go to U.S. investors," said investment bank Merrill Lynch.