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Italian court to rule after summer on Vivendi's appeal over TIM - Mediaset

Reuters  |  MILAN 

(Reuters) - An will likely decide after the summer whether French group needs to reduce its stake in or to prevent a concentration of power, two legal sources said on Wednesday.

Last year, the (AGCOM) ordered to cut its stake in one of the two companies within a year, ruling it was in breach of rules designed to prevent a concentration of power.

Vivendi, which aims to build a empire in southern Europe, is the biggest single shareholder in with a 24 percent stake and had accumulated a 28.8 percent shareholding in Mediaset, controlled by the family of former

appealed AGCOM's decision but in April this year it transferred 19.19 percent of its stake in to a trust called to comply with the order.

A ruling in favour of Vivendi could mean the French group gets back ownership of the stake it transferred.

"There will be a decision no earlier than 45 days, but more probably after the summer," one of the sources said.

One of Vivendi's lawyers did not rule out a possible complaint to the on the issue.

"Vivendi has not presented a complaint to the because it has full confidence in Italy's justice system which applies EU laws. But if that is not the case we will call on the Commission," one of Vivendi's lawyers, Giuseppe Scassellati Sforzolini, said.

Vivendi's lawyers have argued the decision by AGCOM is discriminatory and goes against both Italian and European rules given Vivendi does not exercise a dominant influence on

At its latest shareholder meeting, Milan-based Mediaset, closed the doors of its AGM to the trust, preventing it from exercising its voting rights. Vivendi decided not to present a slate of candidates for the new 15 member Mediaset board.

(Reporting by and Stefano Rebaudo, Writing by Giulia Segreti; Editing by and Mark Potter)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, July 04 2018. 20:53 IST
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