Vivendi 'won't honour' Mediaset contract (4)

(ANSA) - Milan, July 26 - 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.