Vivendi Clarifies Telecom Italia Intentions to Italian Watchdog
November 17 2015 - 8:21AM
Dow Jones News
By Matthew Curtin
PARIS--France's Vivendi SA (VIV.FR) said Tuesday it has had no
contact with Xavier Niel, a French telecommunications tycoon, over
its plans for its investment in Telecom Italia (TI) in a statement
clarifying its intentions to Italy's stock-market watchdog.
The French pay-television and music group, controlled by its
Chairman Vincent Bollore, reaffirmed it holds 20.116% of the
Italian telecom group's ordinary shares.
The statement comes after Vivendi requested four seats on
Telecom Italia's board at the weekend in a move aimed at exerting
greater influence over the Italian telecom company and
outmaneuvering Mr. Niel who has recently taken a sizable stake in
the group.
Telecom Italia said Sunday evening it had received a request by
Vivendi to name the four representatives to its board at the
group's next shareholder meeting, scheduled for Dec. 15. The French
group, the largest shareholder in the Italian firm, also said it
would propose expanding Telecom Italia's board to 17 from 13
members.
Vivendi's request comes after building up its stake in Telecom
Italia over the summer.
At the same time, Mr. Niel, founder of French telecom operator
Iliad SA, has bought options that, if exercised would give him a
15% stake in Telecom Italia.
Soon after Mr. Niel's stake was announced, Telecom Italia
presented a share conversion plan that appeared to be a defensive
move. Yet when announcing the plan, the operator said it was aimed
at increasing the free float and simplifying its capital
structure.
The plan, which shareholders will take up at their December
meeting, would see the conversion of the company's savings
shares--which have no voting rights and command a lower price--into
ordinary stock, which have voting rights.
On Tuesday, Vivendi said it held no savings shares and had "no
contacts have occurred with the members of the board of directors
of Telecom Italia or with other parties informed of the proposal
with respect to the decision of conversion of savings shares before
the meeting of the board of directors of Telecom Italia held on
Nov. 5."
Write to Matthew Curtin at matthew.curtin@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 17, 2015 03:28 ET (08:28 GMT)
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