Vivendi Reaches 20% Threshold of Mediaset Share Capital

By Nick Kostov

PARIS--Vivendi SA, the French film, TV, telecom and videogame giant controlled by Chairman Vincent Bollore, said Wednesday it now holds 20% of Mediaset SpA, the Italian broadcaster founded and controlled by former Prime Minister Silvio Berlusconi.

The latest share purchase again raises the stakes in the battle between two of the world's biggest media moguls. Monday, the French firm said it had 3% of Mediaset as part of its efforts to expand into Southern Europe. It raised that stake to 12.3% on Tuesday.

Fininvest, the holding company that is Mediaset's biggest shareholder and controlled by the Berlusconi family, called Vivendi's earlier share purchases a hostile takeover attempt. It also said late Tuesday that it has acquired more Mediaset shares and options, with a plan to soon have a 38.3% stake, up from its previous stake of just under 35%.

Mr. Bollore's moves come as Vivendi and Mediaset are about to fight in court over the validity of a deal signed earlier this year. In April, they reached a partnership agreement under which they would reciprocally swap a 3.5% stake and Vivendi would buy Mediaset's pay TV business.

Vivendi subsequently asked to change some of the terms of the deal, leading to the collapse of the agreement and a lawsuit launched by Mediaset against the French media company.

Write to Nick Kostov at nick.kostov@wsj.com

(END) Dow Jones Newswires

December 14, 2016 12:53 ET (17:53 GMT)

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