Vivendi appeals against order to cut stake in Telecom Italia or Mediaset -source


UPDATE 1-Vivendi appeals against order to cut stake in Telecom Italia or Mediaset -source

(Adds detail, context)
    MILAN, June 19 (Reuters) - Vivendi <VIV.PA> has appealed
against an Italian regulator's ruling demanding that the French
media group reduce its stake in either Telecom Italia <TLIT.MI>
or broadcaster Mediaset <MS.MI>, a source close to the matter
said on Monday.
    Italian communications regulator AGCOM said in April that
Vivendi's stake-building was in breach of rules designed to
prevent a concentration of power in the country's telecoms and
media sector.[nL8N1HQ5XQ]
    Vivendi is the biggest single shareholder in Telecom Italia,
with 24 percent, and recently acquired 28.8 percent of Mediaset,
Italy's biggest private broadcaster.
    At the time of the ruling the authority did not say how much
Vivendi must divest in either company but asked the French group
to present a "specific plan of action" within 60 days, a
deadline that expires this week.
    Sources told Reuters this month that Vivendi planned to cap
its Mediaset voting rights at just below 10 percent pending the
outcome of its appeal.
    The sources said Vivendi would argue that it does not
control Mediaset and that AGCOM's ruling is an obstacle to a
broader, sector-wide convergence between media and telecoms
    While the market has been speculating which stakes Vivendi
will reduce, sources said that the group's plan was to keep both
as part of efforts to establish a southern European media

 (Reporting by Stefano Rebaudo; Writing by Agnieszka Flak;
Editing by David Goodman)
 ((agnieszka.flak@thomsonreuters.com; +39 02 6612 9450; Reuters
Messaging: agnieszka.flak.thomsonreuters.com@reuters.net))


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Referenced Symbols: MS ,

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