Vivendi Chief Raises Stakes in Battle of Media Moguls--3rd Update
December 14 2016 - 4:16PM
Dow Jones News
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, 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. In training his
sights on Mr. Berlusconi, Mr. Bolloré is taking on a wily
businessman and politician, who has outsmarted his adversaries for
decades, in part by using his political influence to move the
regulatory goal posts and protect his business interests.
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.
Armed with a pile of cash from a series of asset disposals
before Mr. Bolloré won control of the company in 2014, Vivendi has
been on an acquisition spree in recent years. Mr. Bolloré has said
he wants to retool the holding company, which dates back to the
middle of the 19th century and had interests in a variety of
sectors, into a more disciplined media player focused on southern
Europe.
Vivendi owns Universal Music Group, the world's largest recorded
music company, as well as France's Canal Plus TV broadcaster and
French film production and distribution firm Studio Canal.
It has also plunged more recently into videogames, building a
stake of more than 25% in French gaming firm Ubisoft Entertainment
SA,the maker of the "Assassin's Creed" franchise, and winning
control of Gameloft SE, another French games publisher.
Write to Nick Kostov at Nick.Kostov@wsj.com and Manuela Mesco at
manuela.mesco@wsj.com
(END) Dow Jones Newswires
December 14, 2016 16:01 ET (21:01 GMT)
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