Mediaset Shares Jump After EU Court Ruling

By Giulia Petroni

Mediaset SpA's shares jumped early Friday as the company said it could consider new business opportunities after the European Union's top court ruling opens it up to a convergence of players in telecommunications and broadcasting.

At 0851 GMT, shares trade 7% higher at EUR1.69.

The E.U. Court of Justice ruled on Thursday that a provision of Italian law preventing French media company Vivendi SA from acquiring 28% of Mediaset's capital is contrary to the bloc's law.

In 2017, Italian watchdog Agcom demanded that Vivendi reduce its stake in either Mediaset or Telecom Italia SpA to below 10%, as it violated a rule aimed at preventing a concentration of power in the media and telecoms sectors.

The E.U. ruling goes beyond the extent of Vivendi's share in Mediaset, as it could potentially change the Italian telecommunication system structure--a topic that has been at the center of political debate in Italy for years.

After the news, Mediaset said it would evaluate any business opportunities, starting with recent developments for the creation of a single nationwide fixed network.

"Mediaset stressed [...] it would consider every opportunity for the telecoms sector, including the single network under definition," Equita Sim's Stefano Gamberini said. "The target could then be Telecom Italia, but it is not clear how a convergence among the new entities might be reached or if the idea is to create an integrated business."

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

September 04, 2020 05:21 ET (09:21 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.