Among Mediaset and French Vivendi is breaking. And it is breaking loud because it goes to legal action by the threat of a lawsuit billionaire who, doing the math, you may gravitate on a request of over a billion damage. Reason? Vivendi no longer wants the entire premium, but 20% of providing in a second phase the climb to 15% of Mediaset. For now all morning was a hit series and response-based communicated with Mediaset heavily declining in Piazza Affari, where the title came to be suspended for excessive downward and lose up to 14 percent.
Cross-Communications . Let’s order. A report this morning was first Mediaset highlighting the dry course correction of Vivendi: “Vivendi, confirmed the 3.5% exchange of Vivendi’s capital and 3.5% of the capital of Mediaset, it proposes to purchase only 20% the capital of Mediaset Premium and get to hold in three years about 15% of Mediaset capital through a convertible bond issue. ”
Vivendi now only wants a 20% premium, but points to 15% of Mediaset
node. “The letter of Vivendi – adds the Cologno group Monza – eludes a timely response to a notice addressed to the Commission by Mediaset to fulfill its contractual obligations, so far unfulfilled, in the first place to promptly notify the purchase of the Mediaset Premium control the Antitrust Commission of the EU. Mediaset also inform that yesterday, July 25, the chief executive of Vivendi has verbally informed that Vivendi does not intend to still honor the signed contract. The Vivendi Communication is an absolute novelty for Mediaset and not agreed. Represents a clear contradiction with the commitments made by Vivendi through the contract signed on April 8, concluded after long negotiations with the approval of all the relevant bodies of both sides. “
the antitrust background. In short, Vivendi would not even release Antitrust EU agreement reached on 8 April that provides for the exchange of shares on 3.5% of their capital. 900 million for the assessment of the package at the time Vivendi. To get to that sum Mediaset has put on the table its share more premium (although at the time we speak of a 89% stake with Telefonica still awaiting final destination). The failure to communicate EU Antitrust Mediaset would have had cognizance only a few weeks ago. Hence the request for clarification and the new scheme proposed by Vivendi and returned to you.
The statement of Vivendi. On the other hand, the French Vivendi issued in turn a note explaining that the analysis of the results of Mediaset Premium, for which negotiations are under way, have emerged “significant differences.” For this reason, Vivendi continues “the group yesterday sent a proposal to Mediaset to find a new agreement on different terms,” and continue negotiations. Vivendi, the note concludes, “confirms his desire to build a great strategic alliance with Mediaset and Mediaset Premium.”
The Premium accounts. The reference in this case is to the premium accounts that have racked up a red from 85 million euro in 2015 and 63 million in the first quarter. “Premium is in line with the plans that break even in the third year,” explained the CEO of Mediaset, Pier Silvio Berlusconi, in early July during the presentation of the schedules of the TV group.
Botta and Mediaset-Vivendi answer. Mediaset then branches off after noon a second note. “Mediaset – reads – for precise clarity in a note that: 1) There is no negotiation going on between Mediaset and Vivendi. The negotiation has already taken place and ended with the contract duly signed by the parties on 8 April 2016; 2) The analysis of the results of premium is obviously took place before the signing, as is the case prior to any commitments; 3) As to the letters sent by Vivendi to Mediaset, confirm that he had never received any formal dispute the validity or the content of the contract. “
Perspectives. The fact is that now story gets more complicated and not a little. “The Board of Directors of Mediaset, already convened for July 28, will take a position on this proposal and on the grave CEO of Vivendi communication,” writes Mediaset. The contract, as far as the Sole 24 Ore, is armored. It did not provide for withdrawal even in extraordinary cases (read Brexit cases), but it covered only three possible cases: unequal number of subscribers and ARPU, for the invalid channels broadcast rights, lack of confirmation of the football rights. The withdrawal would be exercisable until May 15.
The weight of the football rights. Now, inspect the next steps. Vivendi will certainly appeared a too heavy ballast to Premium. However, there is a short to put their wallets for both champions rights (2018-2021), and for those of Serie A. On the other side is not a surprise to the experts that the real interest of Vivendi both Mediaset and not to premium. In a move of Fininvest generally it would become lower than the blocking minority which governs the company (the 34.768% share). It happened in Telecom. Mediaset for now there is not.
The attack of Fininvest. At this point it’s hard to even notice issued by the shareholder of Fininvest reference, which thunders against “the exceptional gravity and the absolute wrongness of Vivendi behavior “. The statement reads that “the announced decision not want to honor a valid and binding agreement, duly signed by the parties and approved by all the respective competent bodies – adds the note – violates the most basic principles of law as well as ethics economic. They are broken the cornerstones that ensure a fair and orderly functioning of the market. And the attitude leaves Vivendi clearly perceive that his real, not declared goal – beyond the undoubted industrial value of the agreement signed – was actually the one to form a surreptitious and unacceptably an extremely important position among the shareholders of Mediaset “.
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