The French Financial Markets Authority (AMF) announced in a decision published Friday that the Bolloré group and Vincent Bolloré must submit a public takeover bid, followed by a squeeze-out offer within six months, for the Vivendi shares they do not already own.

On the Paris stock exchange, Vivendi shares posted the biggest gain on the SBF120 index following the AMF's announcement, jumping 12.81% to €3.32 at 12:43 GMT.

This decision comes after several months of legal wrangling, sparked by opposition from Paris-based activist fund CIAM to the terms of Vivendi's December 2024 spin-off.

The AMF "considered that Bolloré SE and Mr. Vincent Bolloré, who controls the latter, are required (...) to submit a public offer for the capital securities of Vivendi SE, as it currently exists," and "to file a squeeze-out offer for Vivendi SE shares within a six-month period," according to the authority's decision.

Contacted by Reuters, both Vivendi and Bolloré declined to comment.

"CIAM is reviewing the decision and considering next steps following the AMF's ruling," said Julien Visconti, CIAM's legal counsel, in a statement to Reuters.

The lawyer stressed that the AMF's decision "opens the way for minority shareholders to seek compensation," adding, "We can only welcome this victory for minority shareholders."

However, Julien Visconti noted that the decision has "drawbacks," as it "does not compensate shareholders who no longer hold Vivendi shares today for their lost opportunity," and "does not address the harm suffered regarding the three other entities" that made up the former Vivendi: Canal+, Havas, and Louis Hachette.

The AMF stated in its decision that it does not have the authority to require a squeeze-out offer for these three companies.

POTENTIAL APPEAL

"The refusal to order Bolloré to launch a squeeze-out offer on the three entities resulting from the spin-off is regrettable and could appropriately be subject to an appeal," CIAM's lawyer added.

In a note published Friday, an Alphavalue analyst welcomed the AMF's "timely decision, which enhances an already very attractive investment case," adding that it "changes the game" for Vivendi, which is seen as "massively undervalued."

Vivendi finalized in December 2024 the spin-off and listing of its entities on different stock exchanges, including Canal+ in London and Havas in Amsterdam.

This split was approved by an overwhelming majority of more than 97% of the group's shareholders but faced strong opposition from some minority investors, notably the CIAM fund.

CIAM argued that the spin-off's terms failed to comply with regulations protecting minority shareholders and that the split as decided would not create value for shareholders.

In a rare decision in April, the Paris Court of Appeal overruled the AMF, finding that Vincent Bolloré controlled Vivendi and that the market regulator should re-examine the spin-off.

Vivendi announced a few days later its intention to appeal this ruling to the Court of Cassation.

The AMF stated it "will ensure" that the squeeze-out offer is not concluded until the Court of Cassation has delivered its judgment.

Julien Visconti indicated that a decision from the Court of Cassation is expected by the end of the year, in December.

(Written by Florence Loëve, edited by Kate Entringer and Augustin Turpin)

by Florence Loeve