Vincent Bollore, the chairman of French media group Vivendi, has raised its stake in the company to 14.52% following an agreement with a minority shareholder.
Bollore acquired an additional 2.51% stake in Vivendi for €800m (US$851m) via his family…
Vincent Bollore, the chairman of French media group Vivendi, has raised its stake in the company to 14.52% following an agreement with a minority shareholder.
Bollore acquired an additional 2.51% stake in Vivendi for €800m (US$851m) via his family holding, the Bollore Group, having repeatedly increased his holding to secure control of the Paris-based media company.
The French billionaire has faced heavy criticism from US hedge fund P. Schoenfeld Asset Management (PSAM), which has accused Vivendi of allowing its chairman to buy stakes below the market price, and pushed him to increase shareholder dividends.
According to a statement on Wednesday, PSAM “accepted Vivendi’s strategy aimed at setting up a large group focused on media and content, by building on UMG and Canal+ assets” and supported its management.
For its part, Vivendi agreed to return shareholders a total €6.75bn, equivalent to €5.00 per share, more than it had initially planned. The resolution is to be approved at a shareholders meeting on 17 April.
The company is in exclusive talks to buy an 80% stake in French video website Dailymotion from Orange for €217m and denied recent media speculations suggesting that it was targeting Sky.
Impact on Telecom Italia
Bollore’s increased hold on Vivendi is also likely to have a significant impact on the future of Telecom Italia (TI).
The tycoon, who holds stakes in TI shareholders Mediobanca and Generali, and owns 8.3% of Telefonica’s voting rights in the Rome-based telco via its sale of GVT, could play a key role in helping it expand into the pay TV segment.
Last month, Brazilian regulators approved Telefonica’s acquisition of local broadband provider GVT, provided that it will divest its remaining 6.4% voting shares in TIM Brasil owner Telecom Italia, and that Vivendi will gradually reduce its interest in Telefonica-owned carrier Vivo, fuelling speculation that the French group might further increase its interest in TI in the near future.
