French media multinational Vivendi
S.A. will not honour 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 group
owned 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.
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 in
a statement.
The Italian media company said it is "determined to enforce
its rights" in light of Puyfontaine's "very grave
communication".
Mediaset shares fell by 13.87% to 2.78 euros per share on
the Milan stock exchange after being readmitted to trading
following a brief suspension on the news.
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