Vivendi is close to once again raising its Telecom Italia stake, consolidating its position as the Italian incumbent’s biggest single shareholder.
In mid-September, it emerged that Vivendi had upped its Telecom Italia shareholding to 15.5% from 14.96%
According to several, admittedly contradictory, sources cited by Reuters on Thursday, the French conglomerate has taken steps to further increase its stake to 19%.
One source claimed a number of banks have arranged derivative contracts with Vivendi that will see its stake rise to 19%, while another two sources said that Vivendi has already entered into derivative contracts. Meanwhile, a fourth source said the Telecom Italia shares were purchased on the open market.
Vivendi’s position in Telecom Italia stems from its acquisition of a 12% stake in Telefonica Brasil as part of the sale of its Brazilian broadband arm GVT, which was agreed in August 2014.
Under the terms of that deal, Vivendi exercised an option to exchange just over a third of that stake – 4.5% – for 8.3% of Telecom Italia’s ordinary shares.
Then in June this year, Vivendi opted to buy a further 6.66% stake via two separate transactions, giving it 14.96% in total. That was followed by the aforementioned deal in September that left it with 15.5% of Telecom Italia.
According to one of Reuters sources this week, Telecom Italia is seen by bankers as a possible takeover target and Vivendi chairman Vincent Bollore wants to play king-maker.
