Vivendi's Future Unraveled: Court Ruling Shifts Control Dynamics

Paris's Court of Appeal ruled that Vincent Bolloré does not control Vivendi SE, impacting share prices and avoiding a costly takeover bid. CIAM criticized the decision for weakening minority shareholder protections and signaling weak governance standards in French companies following Vivendi's strategic restructuring.

In a significant decision, Paris's Court of Appeal declared that Vincent Bolloré and Bolloré SE do not hold control over Vivendi SE, according to the company's statement.

Vivendi shares plummeted by up to 12% after this ruling which, for now, eliminates the potential for a mandatory takeover bid by Bolloré, a move analysts estimated could have cost between 6 billion and 9 billion euros. This decision followed the Cour de Cassation's November ruling and refuted arguments asserting Bolloré's personal influence could constitute control.

A prior court order had mandated Bolloré to pursue a takeover bid for Vivendi. However, France's top civil court annulled that decision last November, remanding the case back to Paris's Court of Appeal. Minority shareholder CIAM expressed regret over the ruling, claiming it undermines protections for minority shareholders and projects a concerning signal about governance to investors in Europe's markets.