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TIM examining its options for subsea cables business in wake of Consob control ruling
The future of Telecom Italia Sparkle is highly uncertain following Italy’s ruling that Vivendi exercises de facto control over its parent company TIM, it emerged this week.
TIM is considering a number of options for Sparkle in the wake of Consob’s verdict on Vivendi on Thursday. These could include a spin-off into a separate entity within TIM that would remain under Italian leadership, or even a sale of the business, Reuters reported, citing an unnamed source.
Consob, the Italian market watchdog, ruled that French media group Vivendi can be considered to control TIM, in which it holds a 23.94% stake, because it has sufficient voting power to control the election of directors and the direction of its shareholder meetings.
That verdict, if it is upheld, could give the Italian government an opening to exercise powers of its own over TIM, which is considered a strategic national asset.
According to Reuters, those powers could see it levy a fine or even demand the sale of key assets.
TI Sparkle appears to be top of the list, because of its strategic importance, owning an extensive submarine cable network.
TIM made it clear on Thursday that it strongly disagrees with Consob’s verdict and will lodge an appeal. It has 60 days to do so.
