Italian Regulators Rule Vivendi Can't Keep Big Stakes in Both Mediaset, Telecom Italia
April 18 2017 - 5:37PM
Dow Jones News
By Deborah Ball
ROME -- Italian antitrust regulators threw a wrench into Vincent
Bollore's quest to expand his media empire, ruling the French
billionaire can't keep both of the large stakes he has built up in
Mediaset SpA and Telecom Italia SpA.
AGCOM said Tuesday that stake-building by Mr. Bollore's Vivendi
SA in the two companies breaches Italian antitrust regulations
banning companies from having an excessive share in both the
domestic telecommunications and media markets.
Vivendi must rid itself of its stake in one of the companies
within a year, according to the ruling. AGCOM ordered Vivendi to
present a detailed plan within 60 days as to how it would comply
with the order.
In late 2015, Mr. Bollore began amassing a large stake in
Telecom Italia that now stands at 24%.
According to people familiar with Mr. Bollore's thinking,
Vivendi will appeal the ruling.
In a brief statement Tuesday evening, Mediaset praised the
ruling.
Late last year, Mr. Bollore bought a nearly 30% stake in
Mediaset, Italy's largest private-television broadcaster, which is
controlled by former Italian Prime Minister Silvio Berlusconi. The
move by the French billionaire angered Mr. Berlusconi and drew
lawsuits from Mediaset.
Analysts believe that, if forced to decide, Mr. Bollore will
keep the stake in Telecom Italia, although the people familiar with
the mogul's thinking say he is still hoping to convince Mr.
Berlusconi to strike a deal to supply Mediaset content to Telecom
Italia subscribers and develop a partnership to transmit their
programs over the internet.
Vivendi has moved lately to tighten its grip on Telecom Italia.
At Telecom Italia's shareholder meeting in early May, Vivendi plans
to nominate 10 directors to the company's new board, which will be
reduced to 15 members. It may also push for Vivendi Chief Executive
Arnaud de Puyfontaine to become Telecom Italia's new chairman.
Write to Deborah Ball at deborah.ball@wsj.com
(END) Dow Jones Newswires
April 18, 2017 17:22 ET (21:22 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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