Vivendi Seeks to Increase Stake in Italy's Mediaset to 30%
December 19 2016 - 2:53PM
Dow Jones News
By Nick Kostov
PARIS -- French media company Vivendi SA said Monday it was
ready to buy up to 30% in Mediaset SpA, a move that is likely to
escalate tensions with the Italian broadcaster's founder, former
Prime Minister Silvio Berlusconi.
Vivendi, led by billionaire Vincent Bolloré, said last week it
held 20% of Mediaset. A 30% stake is the legal threshold before an
investor is required to launch a takeover offer for all shares
outstanding.
"Vivendi's Management Board met today and decided, with the
Supervisory Board's authorization, to increase its investment in
Mediaset by acquiring additional shares depending on market
conditions within the limits of 30% of the share capital and voting
rights," the French company said in a statmement.
Vivendi said its decision to buy more shares followed a meeting
between its Chief Executive Arnaud de Puyfontaine and his
counterpart at Mediaset, Pier Silvio Berlusconi, and took into
account the "recent positions" of Italy's Fininvest, Mediaset's
biggest shareholder. It didn't elaborate.
A representative for Mediaset said Monday that he had no further
comment.
Fininvest, the holding company controlled by the Berlusconi
family, holds 39.8% of Mediaset's voting rights. The firm has
called Vivendi's move "hostile" and lodged a complaint in Milan
last week against the French company for market manipulation.
The planned stock purchase raises the stakes in the battle
between two of the world's biggest media moguls. 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.
In the statement, Vivendi said it "its presence in the Mediaset
equity is in line with the group's intention to develop its
activities in southern Europe and its strategic ambitions as a
major international, European-based, media and content group".
Manuela Mesco contributed to this article.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
December 19, 2016 14:38 ET (19:38 GMT)
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