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Mediaset shares rally after peace cope with Vivendi By Reuters 



© Reuters. FILE PHOTO: The Mediaset tower is seen in Milan

By Elvira Pollina

MILAN (Reuters) -Mediaset rallied on Tuesday after it agreed a consensual break-up with its second-largest investor Vivendi (OTC:) , placing an finish to years of authorized sparring and enabling the Italy’s high business broadcaster to pursue its growth overseas.

Mediaset (OTC:) shares jumped nearly 6%, to ranges final reached in September 2019, and had been up 3% by 0811 GMT.

Managed by billionaires Silvio Berlusconi and Vincent Bollore, respectively, Mediaset and Vivendi have been at odds since 2016, when the French media big constructed a 29% stake within the Milan-listed group following a collapsed pay-TV deal.

After a latest string of victories scored by Vivendi in court docket, the events on Monday agreed a scheme beneath which the French firm will drastically lower its stake in Mediaset.

Vivendi will promote available on the market over a interval of 5 years the two-thirds of its 28.8% stake in Mediaset which it had been compelled to position right into a belief.

Fininvest, the Berlusconi household’s holding firm, which already owns 44% of Mediaset, will purchase one other 5% from Vivendi at a value of two.7 euros a share, a contact above Monday’s market shut.

Vivendi spent some 1.3 billion euros in 2016 to constructed its Mediaset stake, paying 3.7 euros a share.

The accord additionally commits Mediaset to paying a rare dividend of 0.30 euro a share in July, whereas making certain Vivendi’s backing of Mediaset’s plan to maneuver its authorized base to the Netherlands as a part of a wider technique to hunt tie-ups with European friends.

“The settlement is constructive as a result of it permits Mediaset to get the switch of its headquarters to the Netherlands and to go forward with the undertaking to create a European free-to-air TV operator,” dealer Equita wrote in a word.

Mediaset, which controls Spanish broadcaster Mediaset Espana, has constructed a possible 23.5% stake in German media group ProSiebenSat.1 as a part of its European growth plan.

It’s also among the many contenders for Bertelsmann’s controlling stake in France’s M6.

Equita mentioned it expects Mediaset will goal “an aggregation with Mediaset Espana and due to this fact with ProSieben”.

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