Paris Court Of Appeal Rules Bolloré Does Not Control Vivendi

The Paris Court of Appeal has ruled that Vincent Bolloré and his Bolloré Group do not exercise control over media and entertainment group Vivendi. This ruling is significant as it removes the obligation for a multibillion-dollar buyout of Vivendi by Bolloré. The decision follows a claim by minority Vivendi investor CIAM, which argued that Bolloré effectively controlled the group despite its stake being under the 30% threshold.

## What happened The Paris Court of Appeal made its ruling on Wednesday, confirming that Bolloré does not exercise control over Vivendi. The ruling follows a long-running dispute between CIAM and Bolloré, with CIAM arguing that Bolloré's influence over Vivendi was sufficient to trigger a mandatory buyout. The court's decision rejects this argument, stating that Bolloré's stake in Vivendi is below the 30% threshold required for a buyout. The ruling is a result of a claim by CIAM, which began in the wake of Vivendi's 2024 breakup and the spinning-off of Canal Plus, Havas, and Louis Hachette. Under French law, shareholders surpassing a 30% ownership threshold must launch a buyout offer. The Bolloré Group retained a 29.3% stake in Vivendi after the breakup. ## Why it matters The ruling has significant implications for the future of Vivendi and its stakeholders. If the court had ruled in favor of CIAM, Bolloré would have been required to launch a buyout offer for Vivendi, potentially costing the group over $10 billion. The ruling also has implications for the Universal Music Group, in which the Bolloré Group owns an 18.4% stake, and Vivendi owns a 13.4% stake. ## How to think about it The ruling highlights the importance of understanding the complexities of corporate ownership structures and the implications of regulatory decisions. It also underscores the need for clarity and transparency in corporate governance. ## FAQ