By Noemie Bisserbe

PARIS--French media company Vivendi SA said Wednesday it was "no longer willing to give priority to finding an amicable solution" to its dispute with Mediaset SpA over the Italian broadcaster's pay-TV unit.

In April, Vivendi agreed to acquire Mediaset's pay TV unit in a deal that included a 3.5% share swap between the two companies. The deal was to be an important step in Vivendi's ambitions to build a pan-European business strong enough to challenge Netflix Inc. and Sky PLC. It was also seen as a boon to Mediaset, which has long struggled to bring its pay TV unit back into the black.

But the French media firm abruptly changed the terms of the previously agreed deal. In July, Vivendi sent the Milan-based firm a new proposal to acquire only 20% of the pay-TV unit, plus 15% of Mediaset itself in three years. Mediaset, which is controlled by the family of former Italian Prime Minister Silvio Berlusconi, branded the deal as an attempt to launch a creeping takeover.

"Vivendi is no longer willing to give priority to finding an amicable solution and reserves the right to take all necessary action to defend its interests and those of its shareholders," said Vivendi in a statement on Wednesday.

Mediaset wasn't immediately reachable for comment.

Write to Noemie Bisserbe at noemie.bisserbe@wsj.com

(END) Dow Jones Newswires

October 19, 2016 12:49 ET (16:49 GMT)