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Annual Report -
2013
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Vivendi
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Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements |
Statutory Financial Statements
Note 24. Litigation
Lagardère against Vivendi, Canal+ Group and Canal+ France
On February 12, 2013, Lagardère Holding TV, a 20% shareholder
of Canal+ France, and Mr. Dominique D’Hinnin and Mr. Philippe
Robert, members of the Supervisory Board of Canal+ France, filed a
complaint against Vivendi, Canal+ Group and Canal+ France with the
Paris Commercial Court. The Lagardère Group is seeking nullification
of the cash management agreement entered into between Canal+
France and Canal+ Group on the grounds that it constitutes a related
party agreement and hence, is seeking restitution, under penalty, from
Canal+ Group, of the entire cash surplus given over by Canal+ France
under the agreement. The parties have agreed to the appointment of
a mediator to help find an amicable solution to the dispute between
them. On June 10, 2013, the Paris Commercial Court appointed Mr. René
Ricol as the mediator. Following the mediation process, which ended
on October 14, 2013, the different parties entered into a settlement
agreement dated November 5, 2013, which put an end to the disputes
between them.
Compañia de Aguas de Aconquija and Vivendi against the Republic of Argentina
On August 20, 2007, the International Center for Settlement of
Investment Disputes (“ICSID”) issued an arbitration award in favor of
Vivendi and Compañia de Aguas de Aconquija (“CAA”), its Argentinian
subsidiary, relating to a dispute that arose in 1996 regarding the water
concession it held between 1995 and 1997, in the Argentinian Province
of Tucuman. The arbitration award held that the actions of the provincial
authorities had infringed the rights of Vivendi and its subsidiary, and
were in breach of the provisions of the Franco-Argentine Bilateral
Investment Protection Treaty. The arbitration tribunal awarded Vivendi
and its subsidiary damages of US$105 million plus interest and costs.
On December 13, 2007, the Argentinian Government filed an application
to vacate the arbitration award on the basis, among others, of an
alleged conflict of interest regarding one of the arbitrators. The ICSID
appointed an ad hoc committee to rule on this application.
On August 10, 2010, the ICSID rejected the Argentinian Government’s
application and the award of August 20, 2007 became final.
On October 10, 2013, Vivendi and CAA entered into a settlement
agreement with the Argentine government which terminated their
dispute.
Claim by Centenary Holdings III Ltd
Centenary Holdings III Ltd. (CH III), a former Seagram subsidiary,
divested in January 2004, was placed into liquidation in July 2005.
On January 9, 2009, the liquidator of CH III sued a number of its former
directors, former auditors and Vivendi. The liquidator, acting on behalf
of CH III’s creditors, alleges that the defendants breached their fiduciary
duties.
On September 30, 2010, Vivendi and one of the former directors of
CH III settled with the liquidator. This settlement put an end to the legal
proceedings brought against them and assigned to Vivendi all claims
filed on behalf of the creditors.
Vivendi, based on the rights of CH III obtained in the settlement,
sued Stephen Bloch, a former director of CH III, and Murray Richards,
the purchaser of CH III. The trial took place from June 12 through
June 27, 2013, and on October 9, 2013, the High Court in London ruled
in favor of Vivendi. On October 25, 2013, Court entered a judgment
requiring the defendants to pay the sum of £9,666,437.
Vivendi’s complaint against Orange before the European Commission for abuse of a dominant position
On March 2, 2009, Vivendi and Free jointly filed a complaint against
Orange before the European Commission (the “Commission”), for
abuse of a dominant position. Vivendi and Free allege that Orange
imposes excessive tariffs on offers for access to its fixed network and
on telephone subscriptions. In July 2009, Bouygues Telecom joined
in this complaint. In a letter dated February 2, 2010, the Commission
informed the parties of its intention to dismiss the complaint. On
September 17, 2010, Vivendi filed an appeal before the Court of First
Instance of the European Union in Luxemburg. On October 16, 2013, the
Court denied Vivendi’s appeal.
