French judges put Warner Music CEO under formal investigation
PARIS (AFP) — French judges have placed the head of Warner Music, Edgar Bronfman Jr, under formal investigation as part of a probe into French media giant Vivendi Universal, legal sources told AFP on Thursday.
Bronfman, who was once a director of Vivendi and who sold shares in the company in 2002, has been placed under investigation for alleged insider trading, the source said.
Bronfman's lawyer, Georges Kiejman, said he was "surprised" by the decision, adding that he would move to have it struck down.
A probe into Vivendi Universal was opened in 2002 following a complaint by an association of small investors.
The judges are looking into events during the reign of former chief executive Jean-Marie Messier, who took Vivendi from a simple utilities company to an international media empire that later flirted with bankruptcy.
Suspicions center on a massive share buyback after the September 11 attacks of 2001, possible insider trading, financial disclosures and the consolidation of partly-owned telecommunications units in Vivendi's accounts.
Six other senior figures in the group including Messier have been placed under investigation during the inquiry.
Bronfman, from Canada, was first questioned by magistrates in July 2007.
He was an executive with Vivendi before resigning from the board in December 2003.
Being placed under formal investigation in France is one step shy of formal charges.
