Vivendi's Turning Point: Court Decision Could Transform Shareholder Landscape

France's Cour de Cassation is poised to decide if the Bolloré family must initiate a buyout for Vivendi's minority shareholders, following claims of 'de facto control.' If ruled against, this could prompt a multi-billion euro buyout, challenging French commercial law interpretations and impacting major assets like Universal Music Group.

The Cour de Cassation, France's highest civil court, is preparing to deliver a pivotal ruling regarding the Bolloré family's control over Vivendi. This decision could mandate a multibillion-euro buyout for the company's minority shareholders, following allegations of 'de facto control' without triggering a compulsory purchase offer.

The debate originated in 2024, when Vivendi's breakup led to allegations of increased Bolloré influence, despite minority shareholder concerns. The Paris Court of Appeal's interpretation that Bolloré exercised effective control again spurred debates on how French commercial law should assess 'de facto control,' sparking contentious discussions among investors and regulatory authorities.

An adverse verdict for the Bollorés may enforce one of the largest buyouts since France's 2022 EDF nationalization, with potential costs between 6 and 9 billion euros. A victory for Bolloré, however, would nullify buyout responsibilities, intensifying CIAM's resolve to escalate the legal battle to the European Court of Human Rights if necessary.

(With inputs from agencies.)