French media multinational Vivendi
S.A. has reneged on an agreement to take full control of pay-TV
business Mediaset Premium, ex premier Silvio Berlusconi's
Mediaset SpA said Tuesday.
"Yesterday, July 25, the CEO of Vivendi said verbally that
Vivendi does not intend to honour the contract stipulated," said
Mediaset, referring to Arnaud De Puyfontaine, CEO of the
groupowned by Vincent Bollorè.
In April Vivendi announced that it had reached "a binding
accord" to take full control of Mediaset Premium via a 3.5%
stock swap with the parent company, Mediaset SpA.
This is "a key strategic industrial accord", the French
company said at the time.
However, on Monday Vivendi made a new offer in light of
what it described as "significant differences in the analysis of
the results" of the pay-TV business, according to a company
statement.
Vivendi now intends to "purchase only 20% of the capital of
Mediaset Premium and end up with approximately 15% of Mediaset
via a convertible bond loan over three years", Mediaset said.
The communication from Vivendi is in "open contradiction"
with the commitments made in April, continued Mediaset, adding
that it is "determined to enforce its rights" in regard to the
agreement.
Meanwhile at a press conference in Milan De Puyfontaine
said Vivendi did not want "control" of Mediaset Premium although
its "objective remains the same.
"(The aim) is to create a big group; the means of
achieving it is different," the CEO said.
"Discussions are underway and we want to find a solution
that is satisfactory to both sides," he added.
On Tuesday Mediaset parent company Fininvest denounced the
"exceptional gravity and absolute impropriety of Vivendi's
behaviour".
"Its conduct clearly suggests that its true, unstated aim
was in reality to create for itself a position of major
importance among Mediaset shareholders," the holding company
that owns 34.738% of Mediaset said.
Mediaset shares fell by 13.87% to 2.78 euros per share on
the Milan stock exchange on Tuesday morning following a brief
suspension on the news.
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