MILAN (Reuters) - Spain’s Telefonica TEF.PA will get part of any damages Italian broadcaster Mediaset may receive from Vivendi (VIV.PA) in an ongoing legal spat in exchange for its stake in pay TV unit Mediaset Premium, a source close to the matter said on Monday.
Mediaset said earlier on Monday it had taken full control of Premium, obtaining Telefonica’s 11.1 percent stake in the unit. It did not disclose financial details.
A source close to the matter said Telefonica would receive 11.1 percent of any damages Mediaset may be awarded in its case against Vivendi in return for its holding.
Telefonica declined to comment.
Mediaset and Vivendi have been at loggerheads since July when Vivendi ditched an agreement to take control of Premium.
Mediaset, controlled by the family of former Prime Minister Silvio Berlusconi, is seeking 1.5 billion euros in damages in the case.
“Telefonica was a passive shareholder in a difficult market and that’s why it’s decided to sell the Mediaset stake,” said a second source with knowledge of the matter.
Reporting by Giancarlo Navach in Milan, additional reporting by Sonya Dowsett in Madrid, writing by Stephen Jewkes; Editing by Crispian Balmer