Court Ruling Eases Tensions Over Bolloré's Control of Vivendi

Paris's Court of Appeal determined that Vincent Bolloré and Bolloré SE do not exert control over Vivendi, impacting share values. This decision counters previous demands for a mandatory acquisition bid after the Cour de Cassation quashed such a mandate in light of Vivendi's fragmented shareholding structure and Bolloré SE's stake.

Paris's Court of Appeal has ruled that neither Vincent Bolloré nor Bolloré SE exercises control over the media giant Vivendi, according to Vivendi's official statement.

The landmark ruling led to a 10% drop in Vivendi's share price at 0900 GMT, as it temporarily alleviates the requirement for Bolloré to issue a mandatory offer. This follows the Cour de Cassation's November verdict, which highlighted that Bolloré's influence as a prominent figure does not equate to control, given Vivendi's diversified shareholder base, effectively narrowing criteria for compulsory bids to concrete voting rights exercised.

A prior court decision had compelled Bolloré to initiate a mandatory offer for Vivendi, a move estimated by analysts to range between 6 billion and 9 billion euros ($10.3 billion). However, France's top civil court overturned that mandate in November, redirecting the matter back to Paris's Court of Appeal. This legal battle originates from Vivendi's intended 2024 demerger, with minority investor CIAM contesting that the changes increased the Bolloré family's influence, even as Bolloré SE holds just below the 30% stake necessary under French law to trigger a compulsory takeover bid.