An Italian Court hearing into the Vivendi vs Mediaset squabble and where Vivendi is objecting to Mediaset’s plan to merge their Italian and Spanish broadcasting businesses into a Netherlands-based company (‘MediaforEurope’) has been postponed until November 29th.
The Court says it wants the two players to again attempt to resolve their dispute.
Vivendi is arguing that Mediaset’s plan disregards the rights of minority shareholders in Mediaset.
Deutsche Bank, in a note to investors, says: “Last Friday (Nov 22) Mediaset also issued a press release saying that it will hold a special EGM on 10th January 2020 to amend the articles of association of MfE including the terms and conditions related to special voting share (SVS). These SVS has been the main subject of disagreement between Mediaset and Vivendi, given MFE’s founding shareholders could have potentially 10x voting rights.”
The bank says: “We continue to see that legal resolution between Vivendi and Mediaset will be a positive for both stocks, ending legal costs, and allowing Vivendi to exit and potentially return the ~€1 billion of cash, and Mediaset to pursue MediaforEurope combination with Mediaset Espana. Moreover, Vivendi liquidating its 28.8 percent stake in Mediaset at a premium to its current price (i.e. €2.725 per share) will be positive to Vivendi’s [valuation].”