🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

Mediaset rises on revived expansion plan and olive branch to Vivendi

Published 2021-04-27, 03:51 a/m
© Reuters. FILE PHOTO: A Vivendi sign at the main entrance of the company's Paris headquarters
VIV
-

MILAN (Reuters) - Shares in Mediaset opened higher on Tuesday after the Italian broadcaster said it was reviving a project for international expansion while also seeking to appease second-biggest investor Vivendi (PA:VIV).

The shares rose 1.1% in early trade, outperforming a flat Milan blue-chip index, after the company said late on Monday that it would ask shareholders on June 23 to approve moving the group's legal headquarters to the Netherlands to make it easier to raise financing and pursue tie-ups with partners.

Opposition from Vivendi, which had fought the project in court, had forced Mediaset to shelve a similar plan to set up a Dutch holding company to support its European expansion strategy.

In an effort to ease tensions with Vivendi, Mediaset said it would ask shareholders on May 27 to scrap a loyalty share scheme that strengthened the position of its top investor, Italy's Berlusconi family.

The scheme had been challenged in court by Vivendi, whose position has been boosted by a string of judicial rulings after a European Union court decision in its favour.

Most recently an Italian court on Friday voided the outcome of a shareholder meeting where Vivendi had been prevented from voting with its full 29% Mediaset stake.

Now that Vivendi has regained full voting rights on its stake, Mediaset needs the French group's backing to push through the plan to move its legal base to the Netherlands.

Mediaset finance chief Marco Giordani on Tuesday told analysts that the relocation plan did not include a special voting system. Under the previous project, an enhanced voting system had been criticised by Vivendi because it further strengthened the Berlusconi family's grip on the company.

© Reuters. FILE PHOTO: A Vivendi sign at the main entrance of the company's Paris headquarters

Vivendi and Mediaset have been at loggerheads since a failed pay-TV deal in 2016. Two people close to the matter on Monday told Reuters the groups were making a fresh attempt to resolve their dispute.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.