Vivendi, Lagardère agree settlement on Canal+
Pascale Paoli-Lebailly | 26-10-2013
Vivendi has reached a deal to buy out minority shareholder Lagardère's 20% stake in pay-TV operator Canal+ France, according to French magazine le Nouvel Observateur, with the deal and price to be announced next week.
A spokesman for Vivendi declined to comment on Friday, and Lagardère was not immediately available.
The two companies have been fighting a legal battle since February when Lagardère sued Vivendi for €1.6 billion in damages over Canal+. Lagardère argued that Vivendi makes permanent use of the business's entire cash surplus under a disputed cash management agreement.
Lagardère has been trying to sell its stake for several years as part of its effort to shed non-core assets, but was never able to agree on a price with Vivendi. Trying the bluff technique, the group also explored an initial public offering in 2011.
Lagardère values its stake in Canal+ France at €1.15 billion while Vivendi believes it is worth around €800-900 million.