Vivendi is taking legal action against Mediaset’s plans to reshape its future after deciding to hold on to its stake in the Italian broadcaster after a deadline to sell expired.
Earlier this month, Mediaset won shareholder approval to create a pan-European media group in an effort to pursue continental alliances with rivals and fend off growing competition from streaming services such as Netflix and Amazon Prime Video.
But Vivendi, which has its own plans to build a European media powerhouse, opposed the reorganisation saying it strengthens the hold on the group of Mediaset’s top shareholder, the family of former Italian Prime Minister Silvio Berlusconi.
Vivendi could have scuppered Mediaset’s plans had it decided to sell its 29 per cent holding back to the Italian group by a deadline of midnight on Saturday.
Sources told Reuters the French media company decided to hold on to its stake and fight the corporate revamp in court.