Key Takeaways:
- Vivendi shares fell 10% after a Paris court ruling
- Court ruled Bolloré does not exercise control over Vivendi
- Ruling removes prospect of a €6B-€9B mandatory buyout
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Vivendi shares drop 10% as court rules Bolloré doesn't control company
Vivendi SE shares fell 10% after a Paris court ruled Vincent Bolloré and Bolloré SE do not exercise control over the media company.
"Today's ruling confirms what we have consistently maintained — that neither Mr. Bolloré nor Bolloré SE exercises control over Vivendi," the company said in a statement.
The decision removes, for now, the prospect of a mandatory buyout that analysts estimated could cost €6 billion to €9 billion ($10.27 billion). France's top civil court had quashed a previous buyout order in November and sent the case back to the Paris Court of Appeal.
The dispute stems from Vivendi's 2024 break-up, which minority investor CIAM said strengthened the Bolloré family's grip on the group despite Bolloré SE holding 29.9%, just below France's 30% mandatory bid threshold.
The ruling diminishes the likelihood of a full takeover premium being realized, removing a key near-term catalyst for the stock. Investors will watch for any appeal from CIAM and whether Vivendi proceeds with further corporate restructuring that could alter its shareholder structure.
This article is for informational purposes only and does not constitute investment advice.
[1] Vivendi Shares Drop After Paris Court Further Shrinks Hopes for Full Takeover by Bollore[2] Vivendi shares drop after Paris court further shrinks hopes for full takeover by Bollore[3] Court Ruling Eases Tensions Over Bolloré's Control of Vivendi[4] Paris court rules Bolloré does not exercise control over Vivendi[5] Paris court rules Bolloré does not control Vivendi
