Posted: Sun., Feb. 13, 2000, 11:00pm PT

Babelsberg director exits

Observers speculate studio used to acquire Berlin waterworks contracts

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BERLIN -- Managing director Friedrich-Carl Wachs of the Babelsberg Studio announced Friday that he's ankling his post, casting a shadow over the legendary studio's annual brunch here Sunday.

Differences of opinion were cited as the reason for the unexpected decision, but it came hot on the heels of a renewed focus on Vivendi's wishes to exit its ownership contract sooner than its 2001 expiration date.

European observers are speculating that Babelsberg, which is on the outskirts of Berlin, was simply a pawn used in Vivendi's bid to acquire the Berlin waterworks contracts, and it has now served its purpose.

Vivendi, which dabbles in a wide range of businesses, argues that it has changed its focus and that Babelsberg no longer fits with its business plan.