Vivendi deal to build stake in Mediaset will not be blocked by Italian government
A deal which will see Vivendi SA, the French digital entertainment conglomerate, build its stake in Italian broadcaster Mediaset SpA to reach nearly 30% as it approaches a full bid for the TV group, will not be blocked by the Italian government, it has been revealed.
Mediaset
The French group took out a surprise 3% stake in the Italian mass media company, founded by the former Italian prime minister Silvio Berlusconi, on 12 December. It has since built its stake in the business to 28.8%, nearing the 30% mark at which time a full bid for the broadcaster will be required.
Fininvest, an Italian holding company controlled by the Berlusconi family, has about a 40% voting stake in the business. Berlusconi is trying to maintain control of the media company and has called out the move as “hostile” and “blackmail”. The two rival media companies have been embroiled in legal action against each other after Vivendi chairman Vincent Bollore backed out of a deal in summer to buy Mediaset's premium pay-TV division.
Earlier in the week Fininvest asked Italian market regulator Consob to act in the dispute, claiming the deal showed market manipulation and information abuse.
Today (29 December) Italy's Prime Minister said the government is not indifferent to Vivendi building its stake in private broadcaster Mediaset, according to Reuters, but has no special powers to counteract the move.
"The government is aware that (Mediaset) operates in an important sector but it does not have and cannot activate any instrument," said Paolo Gentiloni. Instead, the relevant authorities in the country would have to take action if required, he said.