Vivendi Universal shares hammered in European market

Posted | Contributed by 2Hostyl

Vivendi Universal revealed a 12.3 billion euro first-half loss on Wednesday, sending its shares reeling, as new management said it would sell U.S. publisher Houghton Mifflin to help contain a cash crisis. The stricken media giant's shares plunged 27 percent to a multi-year low of 11.60 euros, wiping 11 billion euros off its market value, after Standard & Poor's slashed its credit and debt ratings to "junk" status, citing weak cash flow forecasts. Moody's, which had cut Vivendi to junk last month, followed suit by lowering the group's senior debt rating three more notches to B1 and said further downgrades may be in store. The company's new CEO says he plans to raise 10 billion euros by selling off assets and portions of the company.