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Bollore Raises Its Stake in Vivendi 12.01 Percent – Now Has 162 Million Shares Worth More Than 3 Million Euros

May 3, 2015 by Sabin Piso

Vincent Bollore is chairman and top shareholder at French media company Vivendi. Bollore is currently facing pressure from P. Schoenfeld Asset Management (PSAM) to increase payouts to shareholders and clarify its strategy. Bollore mentioned in a statement that it had bought 24.6 million additional shares at 23.08 euros each, for a total amount of 568 million euros ($614 million). The billionaire businessman now holds 162 million shares worth 3.8 billion euros. Bollore only had control of 10.2 percent of Vivendi.

Bollore

Vincent Bolloré increased his stake in Vivendi SA for the third time in a month as a result of a pressure with its shareholder P. Schoenfeld Asset Management LP. This is a result of Vivendibeing under scrutiny from PSAM, a U.S. hedge fund that wants the company to use funds from recent asset sales for increasing shareholder returns. PSAM is trying to get support from other shareholders for two resolutions it has proposed for Vivendi’s general meeting held later this month. The resolutions mentioned that Vivendi needs to pay shareholders a total of €9 billion.

On the other hand, Vivendi has been fighting back. Vivendi argues that the hedge fund, which owns 0.8% in Vivendi, wants to dismantle the company and is using shareholders not to vote for the resolutions.Vivendi has dramatically reduced its business over the years leaving investors wondering what its new chairman plans to do to develop Vivendi. Mr. Bolloré has said little about his plans and this sparked increased criticism from investors. Mr. Bollorétook over the chairmanship of Vivendi last June and is the largest individual shareholder. He has more than doubled his holding in Vivendi over the past month. It is expected that the chairman is getting ready for an intense general meeting in Paris on April 17.

Mr. Bolloré made it clear that he doesn’t intend to take over Vivendi within the coming six months; this was said in a filing with France’s stock market regulator AMF. The increase in shares is a sign that Bollore is confident in Vivendi’s capacity to become the best in Europe. On the other hand, he did not exclude proposing more members to Vivendi’s board.

Mr. Bolloré will be prompted to reply to Peter M. Schoenfeld, at the general meeting. PSAM has long criticized Vivendi for not providing enough information on its investment strategies and said its chairman is benefiting from undervalued stock prices to improve its holding. The fund has also argued that Vivendi may be able to increase its share price by selling parts or all of Universal Music Group. The PSAM also denied Vivendi’s claims that it was seeking to dismantle the company.

Vivendi has gained backing from its employees in fighting PSAM after warning that the fund could damage Vivendi with its plans to ruin the group.

“We are confident that our group can become an international player in media and content generating strong job creation through a long-term strategy,” noted Paulo Cardoso, who represents Vivendi employees on the supervisory board, in a letter this week. “It is our duty to reject your proposal which is essentially nothing more than a holdup.”

Mr. Schoenfeld on Thursday mentioned that it was rather too early to find out how much backing from shareholders he would get. “Let’s say we’re optimistic,” Mr. Schoenfeld said. “We don’t understand why our initiative is stirring such a controversy. What we are proposing to Vivendi is a win-win deal.”

About Bollore

Bolloré is a French investment and industrial holding group with headquarters in Puteaux, located on the western outskirts of Paris, France. The company employs 28,000 people around the world.The company is led by Vincent Bolloré. The company is listed on the Euronext exchange in Paris; the Bolloré family retains majority control of the company through a complex and indirect holding structure. Bollore stock market evolution: http://www.bloomberg.com/quote/BOL:FP

About Vincent Bollore

Vincent Bolloré is a French industrialist, corporate raider and businessman. He serves as the Chairman and CEO of the investment group Bolloré.

About Vivendi

Vivendi

Vivendi SA is a French multinational mass media company with headquarters in Paris, France. The company is involved in music, television and film. Vivendi stock market evolution: http://www.bloomberg.com/quote/VIV:FP

About Paulo Cardoso

Mr. Paulo Cardoso is a representative of Vivendi SA employees.  He is a trained accountant; he joined La Compagnie Générale des Eaux in 1997 as administrative manager at the Communications Department.In 2002, he integrated the Treasury Department where he is responsible for the Cash Management of Canal+ Group and of the Group’s systems networks.

P. Schoenfeld Asset Management LP

PSAM is a global alternative asset manager focused on event driven investment opportunities. PSAM was founded by Peter M. Schoenfeld andhas been providing services as an investment adviser since 1997. PSAM is registered as an investment adviser with the U.S. Securities and Exchange Commission.P. Schoenfeld Asset Management LLP is authorized and regulated by the Financial Conduct Authority.

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Filed Under: Noutati Sabin Piso Tagged With: Bollore, P. Schoenfeld Asset Management LLP, Paulo Cardoso, PSAM, Vincent Bollore, Vivendi

Telefonica Buys Global Village Telecom from Vivendi

September 25, 2014 by Sabin Piso

Final agreements for the sale of Global Village Telecom to Telefonica have been made between two companies.

gvt

Telefonica S.A. and Vivendi have finalized the sale of Global Village Telecom, GVT, to Telefonica. Both companies have reached an agreement on the 29th of August to enter into exclusive negotiations for this transaction. This acquisition includes a cash consideration of 4,663 million euros plus payment in shares representing 12.0% of the share capital of Telefonica Brasil.

Vivendi, as a part of the deal, has also accepted Telefonica’s offer to acquire 1,110 million ordinary shares held by Telefonica in Telecom Italia, currently representing 8.3% of Telecom Italia’s voting share capital in exchange of 4.5% of Vivendi’s capital in the company. This clearly results in the integration between Telefonica Brasil and GVT.

Experts in the telecommunication industry predict that this acquisition will generate synergies of at least 4,700 million euros. Telefonica Brasil results from this integration and this enhances industry leadership as the country’s integrated telecommunications operator. Telefonica Brasil will be the giant in both the mobile and broadband services, with amazing national coverage. Finally, Telefonica will be able to enhance its positioning and improve its growth profile and financial flexibility.

Telefonica’s improved growth is guaranteed since GVT owns a large new generation network with over 10.4 million homes located in 21 Brazilian states and more than 2.5 million broadband customers. These consumers are mostly located outside the capital city of Sao Paulo.

There is no doubt that Telefonica wants to capitalize on the trend, the Brazilian telecom industry is booming according to experts and even when new players have entered the market. At present, Telefonica Brasil’s Vivo brand has largest market share of 28.7%.

This acquisition will also lead to an easing in the scrutiny that Telefonica has been facing from the Brazilian anti-trust watchdog, Cade. The scrutiny is a result of the stake Telefonica held in Telecom Italia, the second-largest telecom operator in the region. The stake will transfer to Vivendi after the acquisition is completed.

Telefonica

Telefonica earlier offered Vivendi the option to purchase 1.1 billion shares, which the company had in Telecom Italia. The shares represent 8.3% of Telecom Italia’s voting share capital. This was accepted 4.5% of the capital held by Vivendi.

Telefonica closed in the green yesterday, up 0.6%. Vivendi was up 0.3%, and Telecom Italia was down 0.6%. The final closing details of this transaction are subject to obtaining the relevant regulatory authorizations and will soon be announced publicly.

A.L. Mijares

About Telefonica

Telefonica, S.A. is a Spanish broadband and telecommunications provider with operations in Europe, Asia, North America and South America. It is the sixth-largest mobile network provider in the world. Telefonica started as a public telecommunications company. It is headquartered in the Distrito Telefonica in Madrid.

Telefonica is a telecommunications company that invests highly in up to date technologies. is a supporter of the Hybrid Broadcast Broadband TV (HbbTV) initiative (a consortium of broadcasting and Internet industry companies including SES, OpenTV, and Institut für Rundfunktechnik). This updated system in telecommunications and programming promotes an open European standard for hybrid set-top boxes for the reception of broadcast TV and broadband multimedia applications with a single user interface. This technology has run pilot HbbTV services in Spain. Telefonica stock market evolution:

http://www.marketwatch.com/investing/stock/tef

About Vivendi

Vivendi SA (formerly known as Vivendi Universal) is a French multinational mass media and telecommunication company. It has headquarters in Paris, France. The company is active in music, television and film, telecommunications as well as internet services.

vivendi

The company primarily focused on digital entertainment and telecommunications. It is the owner of the French TV channel and movie producer Canal+ Group, as well as music world leader Universal Music Group, Vivendi is also active in telecommunications, owning mobile companies SFR (France) and GVT (Brazil). The most recent transaction of Vivendi was in November 2013, it signed the definitive agreement to sell its majority and controlling stake in Maroc Telecom (Morocco) to Etisalat based in Abu Dhabi. Vivendi stock market evolution:

http://www.marketwatch.com/investing/stock/viv

About Global Village Telecom

Global Village Telecom (GVT) is a Brazilian telecommunications company. It provides services on landline telephone, broadband for consumer and business sectors, Pay TV and voice over IP. GVT has been in the market since the end of 2000. It also offers high-speed broadband, pay TV with paid high-definition channels and integrated and convergent advanced landline telephony. The company offers broadband internet connection through ADSL, ADSL2 +, VDSL2 and FTTH technologies. It offers content and Internet services through the online portal POP, besides VoIP services through VONO to residential and micro-enterprise sectors in Brazil.

Vivendi has bought a 58% stake of the company by the end of 2009, and raised its participation to 99.17% the following year. On August 30, 2014, Vivendi announces the sale of GVT to Telefonica of Spain.

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Filed Under: Noutati Sabin Piso Tagged With: acquisition, Global Village Telecom, GVT, Telefonica, Vivendi