Regulator looks into Vivendi affairs

France's financial regulator the COB has opened an inquiry into Vivendi's financial affairs going back to January, 2001.

But it's insisting that the inquiry is a routine one.

It says it wants to make sure that, given the context of Vivendi's current problems, the company is not hiding anything from it.

Nevertheless, the investigation is sure to cause further headaches for Vivendi's new management.

According to the Financial Times, it has already delayed confirmation of the new loan from Vivendi's main creditor banks.

Rating agency Moody's has already warned that such delays are likely to provoke a further downgrade for the company.

Merrill Lynch analyst Brett Hucker told the paper: "Of course it's not good news. Who knows what they'll pull up?"

But he added: "Everyone is being probed right now, and Vivendi is a prime target."