The French Supreme Court heard arguments Tuesday morning from parties involved in the Vivendi case--a pivotal matter for the Paris financial market that could force the Bolloré group into a costly mandatory buyout offer for its subsidiary.

The nation's highest court is set to deliver its decision on Friday at 2:00 p.m. (1:00 p.m. GMT).

For months, a legal standoff has pitted the Bolloré group--controlled by the family of billionaire Vincent Bolloré--against one of its minority shareholders, Paris-based activist fund CIAM, which contests the terms of Vivendi's late 2024 split.

Vivendi shares plunged as much as 20% last Wednesday after Le Monde revealed that Irène Luc, the First Advocate General of the Commercial, Financial, and Economic Chamber of the Supreme Court, had recommended overturning a Paris Court of Appeal ruling.

In April, the Court of Appeal had overruled the Financial Markets Authority (AMF), finding that Vincent Bolloré controlled Vivendi and that the regulator should re-examine the split. Three months later, the AMF ordered Bolloré to prepare a mandatory buyout offer for Vivendi.

Bolloré and Vivendi are contesting these decisions.

At the outset of Tuesday's hearing, the Advocate General clarified her role, stressing that the opinions of Advocate Generals "are in no way binding" on the chamber to which they are attached, and that it is "very common" for their views not to be followed.

The Supreme Court must decide on two technical questions: whether the Court of Appeal had the authority to rule as it did, and how to define de facto control of a company.

Bolloré and Vivendi argue that control of a company is defined solely by a majority of voting rights--which the Bolloré group does not hold in Vivendi--an argument the Advocate General supported.

Both groups maintain that upholding this definition is essential for "legal certainty" in business.

"The Paris Court of Appeal exceeded its authority," said Alain Bénabent, counsel for Vivendi. Bolloré's lawyer asserted that his client "does not control Vivendi either in law or in fact" and called on the court to "rule definitively," without referral.

"STRATAGEM"

He also criticized the Court of Appeal for its "errors," including "reference to the personality of Vincent Bolloré," who is "absent from these proceedings."

Responding to these arguments, CIAM's lawyer, Patrice Spinosi, invoked a distant historical reference: "In medieval Japan, power was rarely exercised by its official holder."

The fund's lawyer advocated for a "realistic and practical" approach to de facto control, as opposed to a "formalistic" and "strictly arithmetical reading," denouncing the "stratagem" of a shareholder aiming to "render the judge powerless." He urged the Supreme Court not to be "fooled."

Patrice Spinosi defended the Court of Appeal's decision, which he said "takes into account the number of voting rights but also the real weight they carry in decision-making."

The AMF declined to comment during the hearing, according to its lawyer.

In December 2024, Vivendi finalized the split and listing of its entities on various stock exchanges, including Canal+ in London and Havas in Amsterdam.

The split was approved by a broad majority--over 97% of the group's shareholders--but faced strong opposition from some minority investors, notably the Paris-based CIAM fund.

CIAM argued that the terms of the split failed to comply with regulations protecting minority shareholders, and that the partition as decided would not create value for shareholders.

(Reporting by Florence Loève, editing by Sophie Louet)

by Florence Loeve