News
French company increases its holding to 24.9%, mandatory takeover offer triggered at 25%.
Vivendi has increased its stake in Telecom Italia to 24.9%, leaving it a whisker shy of the 25% threshold at which it would be forced to table a mandatory takeover offer for the Italian incumbent.
The French media group acquired 148.5 million ordinary shares in Telecom Italia on the open market between 1 March and 9 March, the companies said in SEC filings.
The move adds just over a percentage point to Vivendi’s stake in the telco and has set industry tongues wagging, given how close it has now come to the 25% limit.
Vivendi became Telecom Italia’s largest shareholder in June last year, acquiring its initial stake in the telco through the sale of its Brazilian unit GVT to Telefonica. It has since built up its holding and has added more than 3.6 percentage points to its stake since the start of 2016.
Despite its earlier insistence that it was not seeking to alter the Italian firm’s strategy, Vivendi has thrown its weight around to gain more influence on the company’s board, and there have been myriad rumours regarding its intentions.
Earlier this month there were reports that Vivendi was mulling its options with regard to replacing Telecom Italia CEO Marco Patuano with a candidate better suited to its own agenda, although Telecom Italia has distanced itself from the suggestion that its leader’s job is under threat.
With its latest stake increase, which according to Reuters cost it €145.3 million, Vivendi has only fuelled speculation that it intends to mould Telecom Italia to its own specifications. These could include a greater focus on the media space in Southern Europe and a sale of its Brazilian mobile operation TIM.
The industry is now watching even more closely to see what its next move will be.
