France’s Top Court to Rule on Billionaire Bolloré Family’s Vivendi Buyout Obligation

France’s highest court will rule on a landmark corporate case this Friday. The Cour de Cassation will decide if the billionaire Bolloré family must buy out Vivendi’s minority shareholders. This ruling could trigger a mandatory buyout worth billions of euros.The decision follows a long legal battle with activist investors. According to Reuters, the core issue is whether the family exercised “de facto control” over the media giant.

Legal Battle Centers on De Facto Control Threshold

The dispute began after Vivendi’s major breakup in 2024. The company spun off its Canal , Havas, and Louis Hachette businesses. While most shareholders approved the move, minority investors argued it unfairly consolidated the Bolloré family’s power.French financial law is clear on this point. Any shareholder surpassing a 30% ownership threshold must launch a buyout offer for others. Bolloré SE’s direct stake sits just below this line at 29.9%.However, the Paris Court of Appeal made a critical ruling last April. It found the family’s broader influence amounted to effective control. The court also decided Vivendi’s treasury shares should count toward the family’s total, pushing them over the 30% limit.

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A ruling against the Bolloré group would have massive financial consequences. The family could be forced to launch one of France’s largest buyouts in recent years. Estimates put the potential cost between 6 billion and 9 billion euros.To fund such an offer, the group might need to sell major assets. This could include its valuable 18% stake in Universal Music Group. The uncertainty has already impacted markets, with UMG shares falling significantly this year.Bill Ackman, a major UMG investor, has publicly expressed concern. He stated the ongoing legal pressure has negatively affected the share price. A victory for the Bolloré family would erase the buyout obligation entirely.

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The final verdict will set a major precedent for French corporate law. The Bolloré Vivendi ruling will define how courts interpret “de facto control” for years to come.

Thought you’d like to know

What is the main issue in the Bolloré Vivendi case?

The case questions if the Bolloré family exercised de facto control over Vivendi. This would breach the 30% ownership threshold requiring a buyout offer. The court must decide if influence matters more than direct voting rights.

When will the final ruling be announced?

The Cour de Cassation is set to deliver its verdict this Friday. The decision follows a hearing held earlier this week. This ends a long legal process that began in 2024.

How much could the mandatory buyout cost?

Analysts estimate the buyout could cost between 6 and 9 billion euros. This makes it one of the largest potential buyouts in France since the EDF nationalization. The exact price depends on Vivendi’s market valuation.

What happens if the Bolloré family loses the appeal?

They would be forced to launch a buyout offer for Vivendi’s minority shares. The French markets regulator has already directed them to prepare a plan. This could force asset sales to raise the necessary capital.

Who brought the case against the Bolloré family?

Activist investment firm CIAM initiated the legal challenge. They appealed to France’s financial markets regulator, the AMF. The case was later taken up by the Paris Court of Appeal.