Telecom Italia’s shareholders will next month discuss a proposal by major shareholder Vivendi to add four new members, increasing the number of directors to 17.
The Italian incumbent this week confirmed its board has supplemented the agenda at its upcoming meeting as per Vivendi’s request. The French media group requested the change earlier this month.
Vivendi, which has increased its holding in Telecom Italia to 20.03% over recent months, wants to nominate four directors to the board, a move that has been widely viewed as a way for it to exert its influence over the telco’s strategy.
Telecom Italia’s shareholders will meet on 15 December. In addition to the Vivendi proposal they will also discuss a share conversion plan the company proposed earlier this month.
At the time, Berenberg analysts noted that the plan makes sense from a financial perspective, since it would enable Telecom Italia to simplify its capital structure and improve liquidity, but found it difficult to explain from a strategic point of view.
Telecom Italia has been at the centre of much speculation regarding its ownership in recent months.
In addition to Vivendi building up its stake, the operator has also welcomed a new shareholder in the form of French businessman Xavier Niel, who has taken a long position in the company totalling 15.2%.
Niel has denied any collusion between himself and Vivendi chairman Vincent Bolloré. Understandably there has been talk of a power struggle, but that seems an unlikely outcome.
