French court says Bolloré does not control Vivendi, removing bid risk
Overview of the Court Ruling and Its Implications
Details of the Court Decision
July 8 (Reuters) - Paris's Court of Appeal ruled on Wednesday that Vincent Bolloré and Bolloré SE do not exercise control over Vivendi SE, Vivendi said in a statement.
Market Reaction
Shares in Vivendi fell as much as 12% after the ruling removed, for now, the prospect of a mandatory takeover offer by Bolloré, avoiding a bid analysts had estimated could cost between 6 billion and 9 billion euros ($10.3 billion).
Legal Reasoning
Following the Cour de Cassation's November ruling, the court rejected the argument that Vincent Bolloré's personal influence as a high-profile figure should amount to control, since Vivendi's remaining shareholding is widely fragmented, narrowing the criteria for mandatory bids to voting rights exercised.
Background of the Dispute
Previous Legal Proceedings
A previous appeals court had ordered Bolloré to launch a mandatory bid for Vivendi. France's top civil court quashed that ruling in November and sent the case back to Paris's Court of Appeal.
Minority Shareholder Concerns
CIAM said it "deeply regretted" the ruling, arguing it weakened protections for minority shareholders and sent a troubling signal to European and international investors about governance standards in French listed companies.
Vivendi's 2024 Break-up and Shareholding Structure
The dispute stems from Vivendi's 2024 break-up. Minority investor CIAM argued the restructuring strengthened the Bolloré family's grip on the group despite Bolloré SE owning 29.9% of the shares, just below France's 30% threshold that triggers a mandatory takeover offer.
Additional Information
($1 = 0.8761 euros)
(Reporting by Lucie Barbier and Leo Marchandon in Gdansk; Editing by Mark Potter and Matt Scuffham)
