Vivendi set to widen authorized battle in opposition to Mediaset past Italy: sources

MILAN (Reuters) – Vivendi (VIV.PA) is taking steps to widen its authorized battle in opposition to Mediaset (MS.MI) past Italy, in a transfer that signifies the French media group has not liquidated its stake within the Italian broadcaster, two sources near the matter stated.

A deadline expired at midnight on Saturday for Vivendi to train the correct to liquidate its stake in Mediaset in mild of a company overhaul that may see the Italian broadcaster merge its home and Spanish companies below a Dutch holding firm.

Vivendi on Sunday declined to touch upon whether or not or not it had exercised its withdrawal proper as a shareholder.

Nonetheless, the plan to broaden the authorized entrance by submitting fits in opposition to Mediaset additionally in Spain and the Netherlands signifies Vivendi has chosen to not promote the stake and as an alternative opted for sticking with a court docket battle, the sources stated.

Mediaset and Vivendi have been locked in a authorized battle since falling out over a failed pay-TV deal again in 2016.

After the aborted sale, the French conglomerate owned by billionaire Vincent Bollore constructed a 29% stake in Mediaset – a holding thought of illegitimate by the group managed by the household of former Italian Prime Minister Silvio Berlusconi.

Regardless of Vivendi’s opposition, Mediaset this month received shareholder approval to create a pan-European media group in a bid to pursue continental alliances with rivals and fend off rising competitors from streaming companies equivalent to Netflix (NFLX.O) or Amazon Prime Video (AMZN.O).

Vivendi, which has plans of its owns to change into a European media powerhouse, on the time vowed to problem the overhaul in court docket.

Shares in Mediaset on Friday closed at 2.761 euros every, barely under the worth of two.77 euros at which Vivendi was entitled to promote its stake again to Mediaset had it determined to go for the door.

Nonetheless, promoting the stake would have translated right into a lack of round 320 million euros for the French group.

Some sources have stated up to now Bollore would possibly favor to remain on as an investor within the hope that court docket rulings in his favor might finally enable him to extend his sway over Mediaset.