MILAN (Reuters) - The board of Italian broadcaster Mediaset said on Thursday it rejected an alternative proposal by Vivendi (PA:VIV) for the sale of its pay-TV unit and would seek legal action against the French media group.
The company owned by former prime minister Silvio Berlusconi said it gave its administrators mandate to sue Vivendi for damages for its abrupt u-turn over the share-swap deal signed on April 8 that would have given the French group the full control of Mediaset's pay-TV arm Premium.
Vivendi said earlier this week it would not honor the previous contract and put forward an alternative proposal.
Mediaset said it would consider criminal action against the French media group.
"The board... considers (the proposal by Vivendi) unacceptable because it is incompatible with the binding contract it has already signed," the broadcaster said in a statement.
Mediaset reported a loss of 27.8 million euros ($31 million)for the first six months of the year, including its pay-TV arm, up from the 18-million euro loss it had posted in the first quarter of the year.
