Mediaset, back Vivendi’s purchase of Premium – The Republic

MILAN – Break between Mediaset and France’s Vivendi, which after seeing the best of Premium accounts change on the alliance program with Alfa defined last April and try to trace an alternative plan to reduce significantly the ‘ commitment on the Italian pay-TV, and that – only in a second stage, after three years – take them to 15% of the tricolor group. In short, go directly to the parent capital, of which Fininvest owns 33.49%, setting aside its subsidiary in difficulty. A new route that displaces the televisions by the Berlusconi family, who not so would be able to immediately get rid of an asset that weighs on the budget for some time now, seeing then upset the plans to play a role at European level nell’indusria of communication of the future. It is no coincidence that the title double digit slumps at the Milan Stock.

In a dry statement released from Cologno Monzese explains the new offer received by Vivendi, which upsets the plans drawn in the spring: “Essentially Vivendi , confirmed the exchange of 3.5% of Vivendi’s capital and 3.5% of the capital of Mediaset, it proposes to purchase only 20% of the capital of Mediaset Premium and get hold approximately 15% of the capital in three years Mediaset through a convertible bond, “says Alfa. Which then adds two steps that give a sense of the heavyweight clash this year. On the one hand, in fact, Mediaset underlines that the letter of Vivendi received only yesterday “sidesteps 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 acquisition of control Mediaset Premium to the Antitrust Commission of the EU. ” On the other hand, explains the CEO of Vivendi – Arnaud de Puyfontaine – “has verbally informed that Vivendi does not intend to still honor the signed contract.”

Mediaset defines the outlet Vivendi position, downstream of due diligence on the premium accounts, “a novelty and not agreed” that “represents a clear contradiction with the commitments made by Vivendi with the contract signed on April 8, concluded after long negotiations with the ‘approval of all the relevant bodies of both sides “. For this, the Board of Directors convened the day after tomorrow for the half-year accounts expects an official position in response to the French and the “serious communication of the CEO of Vivendi. Mediaset is firmly determined to enforce all their rights in each location.”

the reference is to what was announced last April: the agreement between Berlusconi’s company and that of Bolloré, which included the stock exchange of a 3.5 package % of capital and the sale of the Alfa stake in Mediaset Premium pay-TV (89% of pay-TV, with the remaining 11% acquired by Telefonica of Spain would come later). The cartel agreements were intended to constrain in via mutual participation for three years (this is the so-called lock-up). The details of the agreement, which was to be called by next September 30th, it was said that in the first year Vivendi would not buy any action Mediaset, while in the second and third years could not overcome a 5% stake.

From France it is pointed out what led to this new unilateral proposal and Vivendi adds, that had exposed to Mediaset, last June 21, “significant differences in the analysis of the results of its subsidiary Pay TV Mediaset Premium on which the two groups are in talks “. In the press transalpine colossus it specifies that “the president of its board of management – that is, Bolloré – a letter dated June 21, informed the Mediaset significant differences in the analysis of the results of its subsidiary Mediaset Premium pay managers on where the two groups are in talks “. The French team then “did, yesterday, a proposal to Mediaset to find a new agreement on different terms and to continue” discussions, given that “confirms its desire to build an alliance.” Present in Italy for a press conference, De Puyfontaine said he “does not want to control” Premium and added: “The goal does not change, is to create a large group, it changes the way to achieve it. We are discussing – and we want a solution that is satisfactory for both. ” In the background, you play the game of Telecom Italy where Vivendi is the largest shareholder at 24.68% and that in the long run has been repeatedly approached to Mediaset for integration under the French director: “We are happy with our stake in Telecom and we have no intention of increasing it “or assign packages to Orange, said the French CEO.

Returning to the issue premium, what is certain is that with the change of today’s route suddenly take shape doubts about assessments made on pay television, which had already mounted a few weeks away from the announcement of the collaboration between the two groups. On the other hand, also in the first quarter of the pay-TV accounts they had to boulder on those of the whole group, taking them in red 18 million. To insiders seemed to be missing some information related to the sale of premium to Vivendi, whose “100% (based on the French stock prices, ed ) was assessed 756 million inclusive of a financial position net positive to the closing of 120 million “to concretely evaluate the rational thereof. Beginning with the necessity to Mediaset to replenish that same case, or by Telefonica 11% repurchase price of which the Spaniards wanted to undo.