Vivendi Raises Tension With BerlusconiĀ Over Mediaset Stake
(Bloomberg) -- Vivendi SA is going to court in an attempt to stop billionaire Silvio Berlusconi strengthening his control over Mediaset SpA and restore its own influence at the Italian broadcaster.
Mediaset said it received notice from Vivendi, its second-biggest shareholder, that it would ask a Milan tribunal to revoke an April resolution that increased the voting rights of long-term investors. The resolution effectively consolidated Berlusconi's control at Vivendi's expense.
Vivendi will also petition the court to restore its full voting rights, Mediaset cited the notice as saying. The French media group has had limited influence over Mediaset since regulators forced it to transfer most of its voting shares to a third party to stop it having too much sway over Italy's media landscape.
The decision to go to court raises the hostilities with Mediaset's founder Berlusconi at a delicate time. Mediaset plans to set up a Dutch holding company as part of efforts to create a pan-European broadcasting alliance. Vivendi has the potential to block that plan if it decides to withhold its participation in the new structure.
Mediaset Steps Up Lobbying for European Broadcast Alliance
Vivendi has a 9.61% direct stake in Mediaset, with its remaining 19.19% interest held on its behalf by an independent entity. The arrangement was put in place in 2017, when Vivendi controlled national phone company Telecom Italia SpA. Last year it lost a boardroom battle at the carrier to allies of U.S. activist investor Elliott Management Corp., who later removed its Vivendi-backed chief executive. Vivendi still holds around 24% of Telecom Italia.
Mediaset Chief Executive Officer Pier Silvio Berlusconi said Wednesday he didn't think Vivendi would block the Dutch move, and that if Vivendi opposed the plan it would have already sold its Mediaset shares.
The court hearing is scheduled for Nov. 26.
To contact the reporter on this story: Daniele Lepido in Milan at dlepido1@bloomberg.net
To contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Thomas Pfeiffer, Dan Liefgreen
Ā©2019 Bloomberg L.P.
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