Vivendi-Mediaset legal battle heats up as both sides file suit
over this key point is ongoing.
In June, Mediaset announced plans to move its base to Amsterdam and to merge its separately listed Italian and Spanish units into a single pan-European company called MediaForEurope, or MFE. The combined company would operate in Italy, Spain and Germany, where Mediaset recently acquired a 9.6% stake in broadcaster ProSiebenSat1.
Under this plan, Mediaset would own about 35% of MFE and slightly more than 50% of voting rights. Vivendi would hold roughly 23%.
Mediaset has already obtained shareholder approval for the merger plan. But Vivendi opposes the move, calling it a pretext by the Berlusconi family to strengthen its grip on the company and not a sincere attempt to build a pan-European powerhouse to compete with the likes of Netflix.
Vivendi had until last Saturday to try to block the Mediaset merger plan by selling its stake at a loss.
But the French conglomerate has decided instead to hold on to its stake and to step up the legal fight in countries where the antitrust concerns that hamper it in Italy would appear not to apply. (Mediaset argues that the voting freeze on Vivendi should also apply in the Netherlands.)
Late Monday, Mediaset said that Vivendi has taken legal action in Spain to void a Mediaset Espana shareholder meeting that recently approved the merger with Mediaset Italia to create MediaForEurope. Vivendi also filed suit in the Netherlands to annul the MFE bylaws giving Mediaset a controlling 35% stake.
“Even if the merger goes ahead and they land in the Netherlands, there will be litigation going on and on and on,” Francois Godard of Enders Analysis said. (RTRS)