Vivendi has already begun exerting its soon-to-be-acquired influence over Telecom Italia, with a report claiming the French media group is keen for the Italian incumbent to sell its Brazilian business.
According to sources cited by Bloomberg on Thursday, Vivendi chairman Vincent Bollore wants Telecom Italia to consider disposing of TIM Brasil in the next two years. He even wants Telecom Italia to potentially merge with a European rival in the medium term, and initiate a cost-cutting programme.
TIM Brasil has been the subject of intense speculation over the last 12 months.
In August 2014, Oi brought in Banco BTG Pactual to advise it on a possible offer for TIM, confirming in November it was indeed working on a takeover bid that could include "other market participants".
Earlier last year America Movil, which operates in Brazil as Claro, stated that it too would be interested in working with Oi on an offer for TIM.
Telecom Italia CEO Marco Patuano has repeatedly emphasised that TIM Brasil is a strategically important asset that the company has no intention to sell.
Nevertheless, Bloomberg’s sources claim Telecom Italia is open to a sale that would create value.
Thursday’s report came after Spanish incumbent Telefonica announced that the formal demerger of Telco, Telecom Italia’s controlling shareholder group, is on track.
It paves the way for Telefonica – the biggest single investor in Telco – to sell an 8.3% stake in Telecom Italia to Vivendi, as per the terms of Telefonica’s acquisition of Vivendi’s Brazilian broadband arm GVT.
Once the dust settles, Vivendi will be the largest single shareholder in Telecom Italia.
According to Bloomberg’s sources, Vivendi is keen to increase its holding in Telecom Italia to as much as 15%.
There are plenty of potential sellers for Vivendi to ta p up. In addition to Telefonica, there are the other former members of Telco, which will soon be in a position to sell their stakes now that the group has unravelled.
Indeed, Generali will own 4.31% of Telecom Italia, while Intesa Sanpaolo and Mediobanca will hold 1.64% each.
