Mediaset owns all pay TV unit after acquiring Telefonica stake


UPDATE 1-Mediaset owns all pay TV unit after acquiring Telefonica stake

(Adds sources on payment details)
    MILAN, June 19 (Reuters) - Italian broadcaster Mediaset
<MS.MI> said on Monday it had acquired an 11.1 percent stake in
its pay-TV unit Mediaset Premium from Spanish telephone group
Telefonica <TEF.MC>.
    The broadcaster, controlled by the family of former Prime
Minister Silvio Berlusconi, said as a result it now owned the
whole of the Premium unit.
    It did not disclose any financial details. But a source
close to the matter said in exchange for its stake Telefonica
would get part of damages Mediaset hopes to get from Vivendi
<VIV.PA> in an ongoing legal spat involving the unit.
    Telefonica declined to comment.
    Mediaset and Vivendi have been at loggerheads since July
when the French media giant ditched an agreement to take control
of Premium. Mediaset is seeking 1.5 billion euros ($1.7
billion)in damages in the case.
    Telefonica originally bought the stake in the Italian pay-TV
business at the start of 2015 for 100 million euros in a deal
valuing Premium at 900 million euros.
    According to the source, Mediaset had reached an agreement
with the Spanish group to buy the stake for about 70 million
euros and then sell it on to Vivendi.
    But the sale did not go through when the deal to sell
Premium to Vivendi fell through.
    "Telefonica was a passive shareholder in a difficult market
and that's why it's decided to sell the Mediaset stake," said a
second source with knowledge of the matter.

($1 = 0.8971 euros)

 (Reporting by Giancarlo Navach and Stephen Jewkes, additional
reporting by Sonya Dowsett in Madrid, editing by Francesca
Landini and Toby Chopra)
 ((stephen.jewkes@thomsonreuters.com; +39.0266129695; Reuters
Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))


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