Xavier Niel has taken an 11.21% stake in Telecom Italia, a filing from Italian stock market regulator Consob showed on Thursday, confirming newswire reports from earlier in the day.
Effective on 21 October, the French businessman holds call options via Rock Investment that would give him a 6.1% stake in the Italian incumbent, plus other long positions equal to 5.109% of the telco through NJJ Holding, the filing explained.
Bloomberg broke the news earlier on Thursday, citing unnamed sources. According to the newswire, the shares are worth €1.7 billion based on Wednesday’s closing price.
The acquisitions give Niel a significant position in Telecom Italia. As yet there has been no word from the businessman as to what his plans are.
As it stands, Vivendi is Telecom Italia’s largest shareholder with a 20.03% stake.
It acquired 14.9% as part of the sale of its GVT business in Brazil to Telefonica earlier this year, and has added to its holding a number of times in recent mo nths.
By buying into the Italian incumbent Niel is pitting himself against Vivendi chairman and fellow French entrepreneur Vincent Bollore.
Former owner of various telecoms assets, including French mobile operator SFR, Bollore’s company was thought to be exiting the sector, but it has taken great pains to confirm its commitment to Telecom Italia.
"The group reiterates its intention to be a long term shareholder of the Italian telecoms group and, more generally, to develop Vivendi’s activities in Southern Europe," it said earlier this week.
