Vivendi Denies Rumors of Sale of Houghton Mifflin

Seeking to quell rumors that its American textbook publisher is for sale, Vivendi Universal’s new chairman, Jean-Rene Fourtou, sent an e-mail message Tuesday assuring its publishing chairman that the Boston-based Houghton Mifflin unit is not for sale.

The news, shared with Houghton Mifflin employees via companywide e-mail, was greeted with relief. However, Fourtou’s second declaration in as many weeks of what business units he doesn’t plan to sell has increased tensions across Vivendi’s other American units, where employees now are wondering when, or whether, they will receive similar assurances.

Privately, Fourtou has led American executives at Universal’s studio, theme park and music companies to believe Vivendi plans to sell those divisions. Still, he has yet to detail his plans, sources said.

Last week, Fourtou issued a public statement that Vivendi does not plan to reduce its stake in the company’s water and sewer company, Vivendi Environnement, below its current level of 40.8%.

Since he took over the troubled utility and media company this month, Fourtou has been clear that Vivendi must sell significant assets to pare down the $19-billion debt former Vivendi Chairman Jean-Marie Messier accumulated in the last few years buying American media properties, including the $2.2-billion purchase last year of Houghton Mifflin.

Financial analysts and company insiders have speculated that Houghton Mifflin, an acquisition that has baffled observers, was an obvious unit to sell.

Vivendi’s revenue is split evenly between its historic core utility business and its media business. Vivendi Universal Publishing, the world’s third-largest publishing company, accounts for a relatively small $4-billion portion of the $28 billion in annual media revenue. Of that, Houghton Mifflin contributes $1 billion in annual revenue.

Houghton Mifflin, a leading publisher of textbooks, also publishes the American Heritage Dictionary, J.R.R. Tolkien’s “The Lord of the Rings” trilogy and the Curious George series of children’s books.

Vivendi Universal declined to comment on Fourtou’s message. However, sources close to the company verified that Fourtou intended to reassure Houghton Mifflian employees that their company would not be sold.

According to a copy of the e-mail sent to Vivendi Universal Publishing Chairman Agnes Touraine, Fourtou wrote: “I just would like to let you know that all the rumors concerning Houghton Mifflin, again this morning, are totally unfounded. We are proud of this Company and of all the integration successes. Houghton Mifflin is in the [Vivendi Universal Publishing] perimeter and will remain part of it. Please convey this message to the management.”