JP Morgan Chase & Co has become the latest investor to disclose that it holds a significant stake in Telecom Italia.
The financial services firm holds a long position totalling 10.134% in the Italian incumbent, as of 26 November according to a statement from stock market regulator Consob on Monday. JP Morgan informed Consob of its holding on 4 December, the regulator added.
Its stake is made up of an existing holding of 4.515%, plus various potential stakes exercisable via call options, Consob said.
The announcement has attracted attention because it comes at a time when various companies are building up their holdings in Telecom Italia.
Vivendi set the ball rolling earlier this year when it acquired an 8.3% stake in the operator as part of the sale of its Brazilian business GVT. It later increased that holding to 14.9% and has subsequently grown its stake to 20.116%, spending more than €3 billion in total.
France’s Xavier Niel, meanwhile, has built up a long optional position on 15.14% of the Italian incumbent’s share capital through his NJJ Holding company.
A month ago Niel formally confirmed that he is acting alone in Telecom Italia, laying to rest rumours of collusion with Vivendi.
Vivendi has requested a temporary increase in the size of Telecom Italia’s board, a proposal that will be discussed at a shareholder meeting next week. The company wants to appoint four new members, leading some investors to question the level of influence it seeks to have over the telco.
Last week Vivendi published an open letter which, amongst other things, sought to reassure its fellow investors that it is not looking to change the Italian incumbent’s strategy nor to pursue a full merger between the two groups.
