Vivendi has traded blows with activist investor PSAM over the fund's bid for a larger payout from the French media group, with Vivendi warning the fund could be in breach of the law and the fund accusing it of attempting to intimidate it. PSAM, or P. Schoenfeld Asset Management, which says it owns 0.8 percent of Vivendi, has called on other minority shareholders to join its campaign for a 9 billion euro ($9.8 billion) payout, while also urging the company to consider spinning off its Universal Music Group (UMG) unit.
But Vivendi says if it joins forces with others, PSAM could be in breach of French law, which it says bans foreign ownership of more than 20 percent, a limit which if reached would put it at risk of losing its licence for Canal+ television.
A spokesman for Vivendi said on Saturday the company would decide at the beginning of next week on whether to take any further action after looking at PSAM's response in detail.
"Insofar as it would appear that your direct or indirect share ownership, together with that of third parties with whom you might join forces, could surpass the 20 percent threshold, this could be seriously prejudicial to the company," Vivendi said in a letter on Friday.
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