The French company that won the €127 million contract to operate the Luas would not be affected by the difficulties and possible break-up of its parent, a spokesman said yesterday.
Speculation about the future of Vivendi Universal, ultimate parent of Connex Transport Ireland, grew as the company yesterday suffered a day of stock market crisis in the aftermath of a coup that ousted its chairman, Mr Jean-Marie Messier.
Vivendi stock fell in value by as much as 40 per cent during a day of extremely volatile trading. A key board meeting today is likely to prove crucial to what will happen next to the company.
Le Monde published an article stating there were questions surrounding the company's accountancy practices.
The group's shares recovered half their losses after Vivendi Universal issued a statement denying the Le Monde report.
"Contrary to the information published in Le Monde, VU (Vivendi Universal) has strictly applied the required accounting treatment of the BSkyB disposal in its 2001 accounts," it said.
Mr Messier pleaded against the break-up of the media and utilities giant. "I see the predators prowling, the advisers putting together break-up plans," he said.
One of the Vivendi arms, Vivendi Environment, is the parent of Connex Transport Ireland, the company that is to run the Luas for its first five years.
"It is business as usual as regards the Luas and will be business as usual," said a spokesman for Connex Transport Ireland.
Connex operates in 19 countries and is considered to be the largest private transport services supplier in the world.
"Connex Transport Ireland is part of a multibillion dollar transport entity. It carries approximately three billion passengers a year. There is a contract with the Rail Procurement Agency, there is local management in place and it will remain in place regardless of the Vivendi share price or the structure of Vivendi," the spokesman said.
A spokesman for the Rail Procurement Agency also said he did not believe Vivendi's difficulties would have any impact on Connex Transport Ireland.
Connex won a competition for the first five-year contract to run Luas. It is expected that the company will open offices in the Red Cow depot next month and begin the process of taking on staff and training drivers.
The first Luas train is expected to run in December 2003.
The downfall of Mr Messier marks the failure of his vision to build a media and entertainment empire through costly acquisitions such as Canada's Seagram entertainment business and US cable and entertainment group USA Networks.
