News
According to three unnamed sources in a Reuters report, TIM’s largest shareholder Vivendi have filed a legal complaint to a Milan court against TIM’s decision to sell its domestic fixed-line network to US firm KKR
After entering into negotiations in June, the TIM and KKR confirmed the deal, worth roughly €18.8 billion, last month.
Vivendi has repeated made its opposition to this deal clear, stating in a press release that “shareholders’ rights have been trampled on” and the company will use any legal means at its disposal to challenge this decision and protect its rights and those of all shareholders.
According to the report, Vivendi has asked the court to declare the approval of the sale by TIM’s board as invalid, as it argues that TIM’s assets are worth around €30 billion and are therefore being undervalued by KKR.
This news comes as Vivendi is also exploring the possibility of splitting up its own business into three distinct entities, each of which would be separately listed on the stock market. The company board gave approval of this exploration this week, citing the search for improved valuation.
“Since the distribution and listing of Universal Music Group in 2021, Vivendi has endured a significantly high conglomerate discount, substantially reducing its valuation and thereby limiting its ability to carry out external growth transactions for its subsidiaries,” explained the company in a statement.
The split will be built around French TV firm Canal+, advertising group Havas, and a newly formed investment company.
However, exploration of this possibility is set to take some time, with Vivendi highlighting that “this project will have to prove its added value for all stakeholders and include an analysis of the tax consequences of the various contemplated operations,”.
The possibility of the company restructuring has excited the stock market, with company shares jumping more than 10% on today’s news.
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