Vivendi's grandpa gunman loads the last bullet

By Sophie Sassard and Leila Abboud

PARIS (Reuters) - Vivendi has called on 72-year-old chairman Jean-Rene Fourtou, who saved the group from bankruptcy a decade ago, for one last service: to write what could be the once-proud French telecom-to-entertainment group's closing chapter.

Fourtou let long-time CEO Jean-Bernard Levy go in late June after disagreements over whether asset sales or a break-up were the best way to reverse a deep share slump, and the group is in no rush to find a new chief executive.

With Fourtou now firmly in charge, Vivendi is in what the chairman calls a "no taboo" era and could eventually sell off huge chunks of its six business lines, which include video games, pay-TV, music and telecoms and have failed to produce any benefits by being together.

A shrewd dealmaker and avid sportsman, Fourtou made his name as chief executive of pharmaceutical maker Aventis before he was parachuted in to run crisis-hit Vivendi in 2002, where he kept creditors at bay and oversaw about 12 billion euros in asset sales, including book publishing.

Today, shareholders are betting that Fourtou can pull something out of the hat again. Vivendi shares are up about 10 percent since Levy bowed out.

One shareholder who knows Fourtou said the fact that much of his family's wealth is tied up in Vivendi shares meant he would not shirk from tough decisions.

"If restoring value to shareholders involves a break-up of the business, he will do it," said the shareholder. "He is a pragmatic man and a real business leader."

Fourtou will rely on help from long-time allies among France's business elite, such as Axa