By Nick Kostov and Manuela Mesco 

PARIS -- Vivendi SA, the French film, TV, telecom and videogame giant controlled by Chairman Vincent Bolloré, said Wednesday it now holds 20% of Mediaset SpA, the Italian broadcaster founded by former Prime Minister Silvio Berlusconi.

The latest share purchase again raises the stakes in the battle between two of the world's biggest media moguls, with Mr. Bolloré now in a position to call an extraordinary meeting of shareholders. Monday the French firm said it had 3% of Mediaset as part of its efforts to expand into Southern Europe. It raised that stake to 12.3% on Tuesday.

Mr. Berlusconi, who called Vivendi's operation "hostile," said in a statement Wednesday that the Berlusconi family intends to continue to raise its stake in Mediaset. "We have no intention to let someone diminish our role of entrepreneurs," he said.

He added that his family is united in defending their role in the company.

Fininvest, the holding company that is Mediaset's biggest shareholder and controlled by the Berlusconi family, had previously called Vivendi's earlier share purchases a hostile takeover attempt. It also said late Tuesday that it had raised its stake in Mediaset and filed a complaint in Milan against the French company for market manipulation.

Mr. Bolloré, who as chairman of Vivendi calls the shots with a stake of over 20%, has made a fortune over the past three decades seizing control of businesses, which has earned him a reputation as a skilled, if unpredictable, corporate tactician.

Mr. Bollore also controls Telecom Italia, the country's former telecom monopoly, with a stake of 23.9%.

"What appears to be an unexpected, hostile takeover attempt doesn't really seem the best way to proceed to strengthen one's presence in Italy," said the country's industry minister Carlo Calenda, adding that the government would monitor the situation.

A Fininvest representative said Wednesday that he had no further comment on the issue.

Vivendi's sudden move comes eight months after the two companies signed a cross-shareholding agreement that at the time looked like an amicable way for Mr. Bolloré to further expand his empire into Italy and prop up the flagging fortunes of Mr. Berlusconi's TV business there.

Vivendi subsequently asked to change some of the terms of the deal, leading to the collapse of the agreement and a lawsuit launched by Mediaset against the French media company.

Write to Nick Kostov at Nick.Kostov@wsj.com and Manuela Mesco at manuela.mesco@wsj.com

(END) Dow Jones Newswires

December 14, 2016 14:52 ET (19:52 GMT)