Mediaset to reject Vivendi's revised offer - source

Reuters
The Mediaset tower is seen in Cologno Monzese neighbourhood Milan, Italy, in this April 7, 2016 file photo. REUTERS/Stefano Rellandini/File Photo

MILAN (Reuters) - Italian broadcaster Mediaset (MS.MI) will throw out a revised proposal by French media group Vivendi (VIV.PA) to buy its pay TV business at a board meeting on Thursday, a source close to the matter said on Tuesday.

Mediaset, controlled by the holding company of former Italian Prime Minister Silvio Berlusconi, is ready to take legal action against Vivendi, the source added.

Vivendi backtracked on Tuesday on a share-swap deal to buy Mediaset's pay-TV unit, putting forward an alternative agreement that would give it a bigger direct stake in the Italian broadcaster.

(The story was refiled to add a dropped word in the last paragraph)

(Reporting by Giancarlo Navach, writing by Stephen Jewkes, editing by Paola Arosio)