Vivendi Shares Fall After Court Rules Bolloré Lacks Control

Vivendi SE shares experienced a sharp decline of over 10% on Wednesday following a ruling by the Paris Court of Appeal. The court determined that investor Vincent Bolloré and his company, Bolloré SE, do not exercise de facto control over the media group, thereby nullifying a potential mandatory takeover offer.

The legal dispute stemmed from a challenge by minority investor CIAM after Vivendi's 2024 corporate restructuring. CIAM argued that the breakup had effectively strengthened the Bolloré family's influence, even though Bolloré SE's official stake of 29.9% remains just below the 30% threshold that triggers a mandatory takeover bid under French law.

In its decision, the court rejected the argument that Bolloré's personal influence should be considered a form of control, particularly because Vivendi's remaining shares are held by a wide and fragmented base of investors. The ruling effectively narrows the criteria for determining control to the exercise of voting rights.

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This judgment follows a complex legal path. A previous appeals court had ordered Bolloré to launch a takeover bid, which analysts had estimated could cost between 6 billion and 9 billion euros. However, France’s highest civil court, the Cour de Cassation, had overturned that initial ruling in November, sending the case back to the Paris Court of Appeal for Wednesday's decision.