Diversification "out of the box" - Roland Berger

2.1BACKUPThe portfolio logic need to be evaluated on a detailed basis toavoid value destructionVivendi – The synergy dream"(We will be) the world's preferred creator and provider ofpersonalized information, entertainment and services to consumersanywhere, at any time and across all distribution platforms andservices."Jean-Marie Messier, then CEO, Vivendi Universal, April 2001"You need to look at (Vivendi Universal) as the General Electric ofentertainment – then it is a beautiful company. If, on top of that,you create the convergence, then it is even more beautiful. Buteven if we fail, you still have GE."Dennis Olivennes, Deputy of Canal Plus, April 2001Vivendi – Refocusing to Telco & Media"Contrary to what was hoped for and what was proclaimed, Vivendihas no significant synergies between its components. […] IfJean-Marie Messier had remained chief executive, Vivendi Universalwould have declared itself insolvent within 10 days."Jean-Rene Fourtou, CEO, Vivendi Universal, May 2003"… there never was a business model of the future hidden amongVivendi's disparate holdings. The assets assembled by Mr. Messierwere a grab-bag, nothing more."Manager's Journal, Wall Street Journal, May 2003Share price 31.12.98-31.12.02 vs. index [%] Share price 31.12.02-29.08.08 vs. index [%]VIV: 172SBF: 81 SBF: 151VIV: 21Source: Roland Berger, Press research, Thompson financial21