Vivendi 'won't honour' Mediaset contract

(ANSA) - Milan, July 26 - 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.