(Bloomberg) -- French media conglomerate Vivendi SA decided not to sell any of its Mediaset SpA stake, according to people familiar with the matter, a move that could have collapsed the Italian company's plan to create a European broadcasting alliance.
Saturday was the deadline for investors to exercise their right to withdraw from the plan by selling their Mediaset shares.
The plan, created by Pier Silvio Berlusconi, was potentially threatened by Vivendi, Mediaset's second-biggest shareholder. The French company is in conflict with the Berlusconis over their project to consolidate control over its Italian rival. Vivendi, which is controlled by French billionaire Vincent Bollore, owns 29% of Mediaset.
Vivendi plans to escalate its legal fight against Mediaset beyond Italy, particularly in Spain and the Netherlands, the people added. A spokesman for Vivendi declined to comment.
Mediaset had lined up an ally -- the Luxembourg-based fund manager Peninsula Holding Sarl -- to spend as much as 1 billion euros ($1.1 billion) to purchase stock in case any Mediaset investors, including Vivendi, stepped away from the merger that shareholders approved this month.
Investors had backed Mediaset's plan to create a pan-European broadcaster by merging its Italian and Spanish units, despite initial objections from the French company.
Vivendi shares fell 0.3% early Monday to trade at 24.88 euros. Mediaset gained 0.3% to 2.76 euros.
To contact the reporter on this story: Daniele Lepido in Milan at dlepido1@bloomberg.net
To contact the editors responsible for this story: Thomas Pfeiffer at tpfeiffer3@bloomberg.net, Jennifer Ryan
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
