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Vivendi shares fall on tax change concerns

Vivendi shares fell on the French stock market at the end of last week on concerns over the possible non-renewal of a tax regime that benefited the media giant.

Vivendi’s shares fell sharply before settling at about €20.20 on Friday on concerns that a regime known as the “benefice mondial consolidé” (BMC) would not be renewed next year. However, analysts have reportedly said the ending of the BMC would not have a major impact on the company’s value.

The BMC, originally instituted in 1965, allows the fiscal consolidation for tax purposes of all companies in which a major shareholder holds more than 50%, permitting companies to deduct taxes and losses from international subsidiaries. Vivendi is seen as the major remaining beneficiary of the system.