Trading in Italian broadcaster Mediaset’s shares was halted after it became the latest reported acquisition target of cash-rich French media conglomerate Vivendi.
The shares had soared 7% following a report by France’s La Lettre de l’Expansion that…
Trading in Italian broadcaster Mediaset’s shares was halted after it became the latest reported acquisition target of cash-rich French media conglomerate Vivendi.
The shares had soared 7% following a report by France’s La Lettre de l’Expansion that claimed Vivendi was “actively” looking to acquire the group, controlled by former Italian prime minister Silvio Berlusconi, as well as independent film studio Europacorp.
Separately, Reuters reported that satellite broadcaster Sky Italia had approached the Italian firm to buy its pay-TV business Mediaset Premium, but was rebuffed. Informal talks are continuing, according to one of its sources.
The report also suggested that Qatari broadcaster Al Jazeera had resumed negotiations about buying Mediaset Premium, which is 89% owned by the broadcaster and 11% by Spain’s Telefonica.
In April last year, Mediaset confirmed rumours that its pay-TV business had attracted expressions of interest from several foreign companies, two days after denying press speculation that a deal had been reached with Al Jazeera and Vivendi-owned French DTH firm Canal+.
Mediaset, Sky Italia and Al Jazeera did not reply to requests for comment about the recent speculation, while Vivendi declined to comment.
Al Jazeera is keen to expand further outside its core market in the Middle East. It is reported to be close to buying Turkish DTH firm Digiturk after missing out on a deal for Canal+, the Spanish satellite broadcaster also known as Distribuidora de Television Digital.
Vivendi, meanwhile, has been a firm favourite of the rumour mill because its chairman Vincent Bollore has said it is mulling acquisitions, after raising about €15bn (US$15.8bn) following a number of telecoms divestments.
The French group recently denied reports that claimed it was interested in acquiring its smaller rival Lagardere, or Sky Italia’s UK-based owner Sky.
Last year, Mediaset Premium won exclusive rights to broadcast Champions League football matches in Italy, valued at €700m (US$760m), dealing a blow to Sky, which earlier this month inked a content partnership with Telecom Italia (TI).
Notably, TI is also negotiating a similar deal with Mediaset in a bid to expand into the quad-play segment.
Meanwhile, Vivendi is set to become TI’s single largest shareholder, having recently acquired 8.3% of Telefonica’s voting rights in the telco via its sale of Brazilian broadband provider GVT.
Bankers expect Vivendi chairman Vincent Bollore to advise Telecom Italia on its own pay-TV strategy.
