Thursday, July 28, 2016

Mediaset-Vivendi, is confrontation. The Biscione: “We will act in civil and criminal”. And the French: “Stop a defamatory tone” – The Daily

From words to deeds within 48 hours. L’affaire Mediaset-Vivendi ends in the courts. Not just those civilians, usually deputies to untie the knots of similar disputes, but also criminal. Yes, because Mediaset is ready to take civil and criminal to enforce the contract on pay-TV. The Alfa has passed counterattack at the end of the board on the half-year accounts. The French had decided to no longer acquire the entire stake in pay TV Premium, but only 20%, confirming the exchange of 3.5% of Vivendi’s capital and 3.5% of the capital of Mediaset as indicated agreement last April, but he is aiming to get to hold in three years about 15% of Cologno capital through a convertible bonds .

Mediaset Premium on the analysis of the results had promptly it stated that it had taken place “before the signing, as is the case prior to any commitments.” The reference seems to red of the accounts of a premium, of 85 million euro in 2015 and 63,000,000 in the first quarter, such as weighing down the accounts of all the Italian group closed the first quarter of 2016 with a red 18 million in terms of net income while a year ago reported a profit of 600 thousand euro. No premium, the Group would have reported a net profit of 38.6 million.

Under the new proposal beyond the Alps, in practice, with a capital increase reserved for Vivendi, French in three years would become a strong shareholder of Mediaset seen that the share of Fininvest , slightly today less than 35%, would be diluted. The new Vivendi position, made public last Tuesday, has therefore caused the break between the two groups.

The group of Cologno Monzese closed the first six months in red precisely because of the 34.6 million cash outlay by the agreement broken by the French in recent days. The loss is 27.8 million euro, compared to a profit of 24.2 million in the same period last year. Mediaset stressed that she was ready to “take appropriate actions that will achieve the ‘fulfillment of the contract by Vivendi”, and “in the event of inaction” will act “in civil and possibly criminal “.

the agreement between the company headed by Pier Silvio Berlusconi and the group chaired by Breton financier Vincent Bolloré, provided for the sale of 100% of the premium to the French and a reciprocal exchange of shares by 3.5 % between Mediaset and Vivendi. But the media giant trans broke the contract, officially for “ significant differences ” on the assessment of the premium performance, offering a alternate plan that will reduce the commitment to 20 % of pay-TV and Vivendi may lead to 15% of Mediaset within three years. Proposal already rejected from Cologno Monzese summits, as now confirmed by the CFO in the conference call on the accounts.

“The contract remains valid and binding: there is only a plan and we will do everything we can to enforce the contract, because when you sign is signed and there is no plan B, “he said Marco Giordani . The problem of the French plan is that, if enacted, would dilute the 34.8% stake in which Fininvest controls Mediaset, making a contestable companies on market. In fact, the climb up to 15% of the capital would take place through the issuance of a debenture bond converting.

The break with the French is a tile that Mediaset is not yet able to quantify. The group, said Giordani to analysts, may provide a guidance that includes the Premium “early September” numbers when the Alfa hopes that it will clarify the situation as a result of the clash with Vivendi. “However, not abandon certainly now (that today was riconsolidata in the budget of the group, ed ) and in September we will give guidance on its activities.”

a tile, that of breaking with the French, which is likely to affect the accounts of companies, which in the first half showed revenues up sharply, to 1.87 billion euro from 1.721 billion thanks to the increase in gross advertising ones by 3.7% in Italy and 7.3% in Spain.

Mediaset acknowledges that in the interim for the rest of the year “may weigh negative impacts is the consequent delays decision on the operations of Mediaset Premium – caused dall’interim management due to the terms of the contract with Vivendi – both commercial and operational decisions taken by the Vivendi and not foreseen in the original budget Mediaset Premium “. Jordanians felt, however, confirm the 2016 target if there will be other extraordinary costs linked to the clash with Vivendi for the issue of pay-TV “we will try to cover the additional costs with additional savings,” responded to analysts. Pending the accounts and of the board’s deliberations on the matter Vivendi, Mediaset shares closed on the stock market today with a decline of 2.83% to 2,954 Euros.

The legal battle ad causes the reaction of Vivendi. He does know that increasingly sees as an agreement reached with Mediaset Premium on the issue but “does not accept being accused of not honoring contracts” and “reserves all actions to protect its integrity”, including a c ause for defamation . Vivendi, in particular, explains that the analysis of the internal business plan of pay TV Alfa would emerge a vision “too optimistic” and in fact impossible. It is also mentioned about a Deloitte report, according to which the business plan of Mediaset Premium should be reviewed with much lower results “to be realistic.”

The French group Mediaset also argues that it can not be surprised by the counterproposal made last Tuesday, as the threads on the subject had been start for more than a month and concretised in the letter of 21 June where cites “significant differences in the analysis of” the premium results. In any case, the attitude expressed by Vivendi is to want to “reach an understanding on the issue and does not want in any way aim to Mediaset control.”

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