* Regulator asked Vivendi to cut stake in TIM or Mediaset
* French group transferred part of Mediaset stake to a trust
* Vivendi appealed regulator’s decision last year
MILAN, July 4 (Reuters) - An Italian court will likely decide after the summer whether French media group Vivendi needs to reduce its stake in Telecom Italia or Mediaset to prevent a concentration of power, two legal sources said on Wednesday.
Last year, the national communications authority (AGCOM) ordered Vivendi to cut its stake in one of the two companies within a year, ruling it was in breach of rules designed to prevent a concentration of power.
Vivendi, which aims to build a media empire in southern Europe, is the biggest single shareholder in Telecom Italia with a 24 percent stake and had accumulated a 28.8 percent shareholding in private broadcaster Mediaset, controlled by the family of former Prime Minister Silvio Berlusconi.
Vivendi appealed AGCOM’s decision but in April this year it transferred 19.19 percent of its stake in Mediaset to a trust called Simon Fiduciaria, to comply with the order.
A ruling in favour of Vivendi could mean the French group gets ownership of the stake it transferred, back.
“There will be a decision no earlier than 45 days, but more probably after the summer,” one of the sources said.
Vivendi’s lawyers have argued the decision by AGCOM is discriminatory and goes against both Italian and European rules given Vivendi does not exercise a dominant influence on Mediaset.
At its latest shareholder meeting, Milan-based Mediaset, closed the doors of its AGM to the trust, preventing it from exercising its voting rights. Vivendi decided not to present a slate of candidates for the new 15 member Mediaset board.
Reporting by Domenico Lusi and Stefano Rebaudo, writing by Giulia Segreti; Editing by Elaine Hardcastle