French court hears opening arguments in Bolloré/Vivendi break-up dispute

Core Viewpoint - The legal dispute in France's highest civil court could compel the Bolloré family to buy out minority shareholders of Vivendi for several billion euros, depending on the court's ruling on corporate control definitions [1][6]. Group 1: Legal Arguments - Vivendi's lawyer argued that the appeals court exceeded its powers, while Bolloré's lawyer contended that the court misinterpreted control beyond majority voting rights, asserting that the Bolloré group does not control Vivendi [2]. - The Paris Court of Appeal previously ruled that despite owning only 29.9% of Vivendi, the Bolloré family exercised effective control due to their influence, counting treasury shares as part of their holdings, thus surpassing the 30% threshold [3]. Group 2: Minority Shareholder Response - Minority shareholder CIAM, an activist fund, called for a more realistic standard for determining corporate control, urging the court to scrutinize shareholder strategies that appear to respect legal thresholds but circumvent their effectiveness [4]. - CIAM warned that if the court rules against them and does not send the case back to a lower court, they would escalate the matter to the European Court of Human Rights [5]. Group 3: Potential Outcomes - A ruling against Bolloré SE could lead to a mandatory buyout of Vivendi's minority shareholders, which may strain the family's finances as they shift focus from logistics to media assets [7]. - Analysts from JPMorgan estimated a 35% chance of a mandatory buyout being imposed, suggesting that Bolloré might consider a voluntary offer if the court rules in their favor [7].