Vivendi this week sought to reassure shareholders with regard to its intentions for Telecom Italia, insisting it is not seeking to change the Italian incumbent’s strategy or to pursue a full merger between the two groups.
The French media company’s CEO Arnaud de Puyfontaine made the statement in an open letter to investment management industry body Assogestioni on Thursday. Its letter was a response to a communication from investors at the start of the week that called on Vivendi to explain the purpose behind its request to appoint four new directors at Telecom Italia. That request, which would increase the number of directors to 17 from 13, will be discussed at a shareholder meeting later this month.
The investors specifically asked Vivendi for its views on the current board and the need to add new members – albeit temporarily – whether it lacks trust in the board, and whether it intends to heavily influence the company, particularly given that three of the four new members it has proposed are Vivendi executives.
"Vivendi has no plan to exercise a relevant influence on the company, nor to integrate the two groups, but rather to add value to the already high quality and standing of the current board and management," the French firm said in reply.
"The fact that…three proposed candidates are top figures within the Vivendi group only confirms the utmost attention given by Vivendi to the future of Telecom Italia," Vivendi added. "Based on the historic attendance at…Telecom Italia’s shareholders’ meeting, Vivendi does not share the view that the proposed directors would lead to an over-representation of investment."
Vivendi said it has spent more than €3 billion over the past few months building up its stake in Telecom Italia, which now stands at 20.116%.
