By Nadya Masidlover
PARIS--French media group Lagardere (MMB.FR) said Wednesday it's
taking legal action against Vivendi SA (VIV.FR) over the management
of cash generated by Canal+ France, a subscriber TV channel which
is jointly owned by the two French companies.
Lagardere, which holds a 20% stake in Canal + France, is
demanding restitution from Vivendi-- which owns the remaining 80%
of the TV company-- of 1.6 billion euros ($2.15 billion) in cash
and said that Vivendi has been called on to appear in the Paris
commercial court on March 21, 2013.
In a statement, Lagardere said it contests the legality of the
cash management agreement concluded between Canal+ France and its
parent company Canal+ Group, a unit of Vivendi.
Vivendi said Tuesday it "formally denies the allegations" saying
that Lagardere "expressly approved this agreement during the
creation of Canal+ France in 2007" and not previously challenged it
until now.
The move comes as analysts await the sale of several assets by
Lagardere including the 20% stake in Canal+ France.
Tuesday, Lagardere said that the situation regarding the cash
management "has caused a deadlock preventing Canal+ France, as
things stand, from going ahead with an IPO in normal
conditions".
Meanwhile, Vivendi affirms that the legal action is aimed to
force it into acquiring the minority stake in Canal+ France.
Write to Nadya Masidlover at nadya.masidlover@dowjones.com