France

Media giant replaces CEO

Jean-Marie Messier, the much-maligned chairman of Vivendi Universal, was formally removed from his post Wednesday and replaced by Jean-Rene Fourtou of the pharmaceutical company Aventis.

Messier’s removal had been expected for days, but was formalized at a hastily called board meeting. The move capped a spiraling crisis at the media giant whose shares lost 76 percent of their value this year.

The company, which owns the USA Networks and Universal Studios, said it would make what Fourtou called a “short-term liquidity crisis” its priority. Investors, once excited by Messier’s vision of a conglomerate linking media, entertainment and high technology, began to doubt his ability to mesh the company’s diverse businesses together and reduce its borrowings.

Utilities

Williams announces plans to sell Hugoton pipelines

Tulsa, Okla.-based Williams Co. announced a deal Wednesday to sell its Hugoton natural gas gathering system for $100 million to FrontStreet Hugoton LLC.

The deal, expected to close by July 31, is part of Williams’ plan to strengthen its balance sheet by shedding $8 billion in assets and costs.

The Hugoton system includes about 1,800 miles of pipeline in seven counties in southwest Kansas. FrontStreet Hugoton is an affiliate of FrontStreet Partners, a Houston-based private investment firm.

Economy

Unemployment claims drop

New claims for unemployment benefits dropped to a 15-month low last week, suggesting that companies are reducing layoffs. But that doesn’t mean there will be a big wave of hiring, economists predict.

For the week ending June 29, new applications for unemployment insurance fell by a seasonally adjusted 11,000 to 382,000, the Labor Department reported Wednesday.

That was the lowest level since March 24, 2001, and the fifth straight week below 400,000. The more stable four-week moving average, which smoothes out weekly fluctuations, dipped to 392,000, the lowest in just over three months.

Economists viewed the decline as an encouraging sign that the pace of layoffs was stabilizing.

Trading

Markets closed

Financial and commodity markets are scheduled to be closed today in observance of the Fourth of July holiday. They are scheduled to reopen Friday for a brief session of trading.