Vivendi Universal: In a Strategic Flux

In 1854 the company began supplying water to Nantes and in 1860 to Paris. Inspired by the success of the utilities business, CGE's services were expanded to various places in the years to come. CGE expanded its operations to other countries by supplying water to Venice in 1880 (this was the company's first international contract). CGE was awarded utility contracts to supply water to the cities of Istanbul (1882) and Porto (1883). By 1953, CGE, which had a utility network of ten thousand kilometers, supplied drinking water to eight million people in France. Over the next two decades, CGE further strengthened its utility services business by offering district heating services and waste disposal (in 1967) by setting up plants for domestic waste disposal (for composting as well as heating purposes).

The acquisition of Compagnie Generale de Chauffe in 1980 transformed CGE into the largest private energy group in France. Subsequently, in 1980's, the company also acquired Omnium de Traitement Et de Valorisation (OTV), a water management company, and Compagnie Générale d'Entreprise Automobiles (CGEA), a transportation and waste management company. In 1983, CGE and the Agence Havas media group (Refer Table I for a brief note on Agence Havas) together established Canal Plus, the first ever pay television (TV) channel² in France. CGE held a 15% stake in the new company. CGE expanded into the telecommunication and media businesses by establishing Société Française de Radiotéléphone (SFR) in 1987, which became one of France's largest wireless operators...