Telecom Italia Media. Seat Pagine Gialle's conduct and actions ruled lawful during acquisition of Cecchi Gori Communications

10/09/2003 - 00:00 PM

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Board of Arbitration releases its findings

Telecom Italia Media announces that a final decision has been reached in the arbitration proceedings that were brought initially in August 2001 by Fin.Ma.Vi. SpA and Media Holding Srl (Cecchi Gori Group) against Seat Pagine Gialle SpA (now Telecom Italia Media SpA) in order to assess whether or not the contract stipulated on 7 August 2000 was invalid or should be cancelled regarding the acquisition of a 75% equity stake in Cecchi Gori Communications SpA (parent company of the enterprises that held the TMC and TMC2 television franchises, now known as La7 and MTV) and seeking 750 billion lire in indemnity for damages.

The Board of Arbitration has ruled that in no way did Seat Pagine Gialle behave improperly, as had been alleged by the Cecchi Gori Group.

Specifically, the Board ruled that the capital write-off and reconstitution of Cecchi Gori Communications was wholly lawful. The Board also deemed that the 30-day period set for exercise of the subscription right was both fair and lawful. In short, the Board ruled that the actions undertaken by Seat Pagine Gialle were legitimate in underwriting 100% of the (reconstituted) capital of Cecchi Gori Communications and consequently in taking over full control of the company.