Vivendi said that its CEO Arnaud de Puyfontaine wrote to Mediaset’s management on June 21 to inform the Italian broadcaster’s management of its concerns.
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In addition the Group yesterday made a proposal to Mediaset to come to a new agreement, under different terms, so as to pursue discussions.
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. It said it would purchase a further 15% of the pay TV unit’s capital in three years through a convertible bond issue.
A Vivendi spokesman said that the disagreement between the French and Italian companies centered on “projections and projected results”, but expressed confidence that the two can find an agreement. Vivendi seemingly wants only 20 per cent of Mediaset Premium, instead of the originally proposed 100 per cent.
Vivendi SA pulled out of a deal to buy all of Mediaset SpA’s pay-TV unit after, setting up a dispute with the company founded by former Italian premier Silvio Berlusconi and triggering a sell-off in its shares.
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Mediaset’s board will take an official position July 28 on Vivendi’s action. Vivendi would also buy the remaining 11% stake in the pay-TV unit from Spain’s Telefónica.TEF -0.41 % . Analyst Charles Bedouelle added that “On the positive side, investors could rejoice to the idea that Vivendi doesn’t buy the loss making Mediaset premium”.
