Vivendi says it will vigorously contest a claim by Lagardère that a cash management agreement between Canal+ France and parent company Canal+ Group should be treated as null and void.
Lagardère is seeking the return of €1.6 billion in cash to Canal+ France, in which it owns 20%.
Lagardère says that the Vivendi group is making permanent use of Canal+ France’s entire cash surplus under a cash management agreement, the legality of which it is contesting.
The company argues that it is receiving a “very low interest” on money being used by Vivendi for its own goals.
Lagardère said it regretted the action that was preventing an IPO by Canal+ France.
For its part Vivendi said it was surprised by the claim given that Lagardère TV Holding had approved the agreement during the creation of Canal+ France in 2007.
It said the move was an attempt by the Lagardère Group to destabilize Vivendi and force it to buy back its stake in Canal+ France.
