Telepiù is owned by Vivendi Universal and Stream by News Corp and Telecom Italia (50:50). It is thought that Vivendi has been hoping to back out of the deal for some time, partly because of the cost – $390 million – and partly because the two businesses have been running at a loss.
Vivendi chief Jean-Marie Messier is currently tightening his company’s belt following a boardroom backlash against falling financial figures in 2001 after he embarked on an acquisition spree (see Messier Holds Position At Vivendi As Figures Beat Expectations).
The ruling by the regulatory authority thus provides Messier with an opportunity to back out of the deal. A statement issued by Canal+ (a Vivendi subsidiary) says that the limits imposed by the ruling would impede the implementation of its operational strategy.
