News
French media group says it is not working on a three-way deal for Mediaset Premium.
Vivendi on Friday denied that it is involved in a new deal for Italian broadcaster Mediaset’s pay TV business that would have involved Telecom Italia.
The French media group, which remains Telecom Italia’s largest shareholder despite having diluted its stake last month, dismissed media reports that it was working on a three-way deal with the Italian telco and Mediaset, Reuters reported.
According to the newswire, Vivendi said that it and its major shareholder chairman Vincent Bollore "categorically deny" press reports about such a deal. The firm’s denial specifically states that it is not working with Telecom Italia on a plan to split control of pay TV business Mediaset Premium between itself, the telco and Mediaset.
The rumour came from Italian financial paper Il Sole 24 Ore, Reuters said.
Vivendi brokered a deal to acquire Mediaset Premium in April, but relations between the parties subsequently soured and the French firm finally abandoned the plan in October. Amongst other things, it took issue with the pay TV firm’s business plan, describing forecasts for reaching breakeven by 2018 as unrealistic.
Vivendi is reportedly keen to expand its media business in southern Europe, although the extent to which it will look to involve Telecom Italia in those plans remains unclear.
Last month Vivendi diluted its stake in the operator’s share capital to 21.91% from 24.68% as a result of a bond maturation. As a result, it holds 23.15% of Telecom Italia’s ordinary shares, as of 22 November.
