Fitch: Vivendi legal dispute brings uncertainty

Fitch Ratings said the lawsuit filed against Vivendi SA by Liberty Media could lead to higher than expected legal damages.

This week's jury verdict limiting damages to €765m was unexpected, the agency said.

Vivendi intends to pursue legal options to overturn the verdict or to reduce the damages award, Fitch said.

Fitch said it understands that the possible outcomes to this case are complex and uncertain. However, there is a risk that Vivendi could be liable for damages in excess of the €100 million provision it has made for the U.S. securities class action, either from the Liberty Media case or other similar lawsuits that may be filed, the agency said.

This comes at a time when Vivendi's headroom in its credit profile is still limited because of the EMI acquisition expected to close later this year and the competitive pressure facing SFR, Vivendi's French telecoms subsidiary, Fitch added.

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