US Markets

Bollore will not seek exemption on public tendering rules on Vivendi

Credit: REUTERS/Charles Platiau

French billionaire Vincent Bollore's family-owned group has pledged to media giant Vivendi that it will not request an exemption to file a tender offer on Vivendi's shares if it crosses the 30% threshold in capital ownership or voting rights, said Vivendi.

By Mathieu Rosemain

PARIS, June 11 (Reuters) - French billionaire Vincent Bollore's family-owned group BOLL.PA has pledged to media giant Vivendi VIV.PA that it will not request an exemption to file a tender offer on Vivendi's shares if it crosses the 30% threshold in capital ownership or voting rights, said Vivendi.

The Vivendi annual shareholders' meeting will have a resolution giving Vivendi the possibility of buying back and cancelling up to 50% of its capital.

Bollore's group said in a letter addressed to Vivendi that it could also sell some of its Vivendi shares if were to participate in the share capital reduction by tendering its shares.

Vivendi is currently in the process of spinning off its Universal Music Group (UMG) division, which is the music label behind artists such as Lady Gaga and Taylor Swift.

Glass Lewis and ISS, the world's two biggest proxy advisers, have recommended Vivendi shareholders vote in favour of the spin-off plans.

However, those two firms also recommended investors vote against the resolution giving Vivendi the possibility of buying back and cancelling up to 50% of its capital, saying it was not in shareholders' best interests.

Glass Lewis cited concerns from activist fund Bluebell Capital Partners that Bollore could use this tool to increase his stake in Vivendi without making a tender offer.

(Reporting by Mathieu Rosemain; Editing by Sudip Kar-Gupta)

((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BOLL VIV

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More