By Pietro Lombardi 
 

The shareholders of Mediaset SpA (MS.MI) and Mediaset Espana Comunicacion SA (TL5.MC) have approved plans to merge the two media companies to create a new Dutch holding, despite the opposition of shareholder Vivendi SA (VIV.FR).

The Dutch holding will be called MFE - MEDIAFOREUROPE NV, the Italian media company said Wednesday.

French media group Vivendi voted against the plan at the shareholders' meetings of both Mediaset and Mediaset Espana, a spokeswoman for the French company said.

The French company holds 9.99% of the Italian broadcasting company's voting rights after taking into account the transfer of some of its shares to Simon Fiduciaria, an asset trust.

Vivendi has also bought roughly 3.3 million shares in the Spanish company, building a stake of more than 1%, the spokeswoman said. Mediaset has a stake of more than 50% in Mediaset Espana.

"Vivendi deplores today's approval of a resolution regarding Mediaset's proposed merger into MEDIAFOREUROPE at the Mediaset extraordinary shareholders' meeting," it said.

Earlier Wednesday, Mediaset had said that its board decided not to oppose Vivendi's request to take part in Wednesday's extraordinary shareholders' meeting but prevented Simon Fiduciaria from voting. Vivendi said it disagrees with the latter decision, calling the exclusion of Simon Fiduciaria unlawful.

"The merger itself would result in a total and immediate annihilation of minority shareholder rights, without the payment of any premium to them," it said.

Mediaset's decisions expose the company to "severe legal uncertainty," it said.

"Vivendi will use every legal recourse at its disposal in all relevant jurisdictions to challenge the proposed MEDIAFOREUROPE structure, both under national and European laws," it said.

Olivia Bugault contributed to this story.

This story was translated in whole or in part from a ​Spanish-language version initially published by EFE Dow Jones, a partner of Dow Jones & Co.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

September 04, 2019 11:40 ET (15:40 GMT)