Vivendi CEO Tries to Reassure Telecom Italia Shareholders
December 03 2015 - 3:00PM
Dow Jones News
PARIS—Vivendi SA moved Thursday to assuage the worries of
Telecom Italia shareholders that the French media company might be
trying to tighten its grip on the Italian firm with a plan to name
four members to its board.
"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," Vivendi CEO Arnaud de Puyfontaine said in a
letter.
The executive's three-page defense was a response to a group of
investors—including APG Asset Management NV, Legal & General
Investment Management Ltd. and Standard Life Investments Ltd.—that
raised concerns about Vivendi's plan.
A Nov. 30 letter, signed by the investors' coordinator Marco
Vicinanza, said Vivendi's proposal would decrease the influence of
independent minority members appointed by institutional investors
and affect corporate governance.
In response, Vivendi said its four chosen board members should
"act in the sole interest of [Telecom Italia] and all its
shareholders."
Vivendi has also come under fire from two influential proxy
advisory firms.
Proxy advisory firm ISS recommended that Telecom Italia
shareholders oppose the appointment of Vivendi's nominees, saying
there is no "strong rationale" for the changes. On Wednesday, proxy
firm Glass Lewis also advised shareholders to vote against the
proposals.
Vivendi didn't respond to the proxy firms in its letter
Thursday.
The French group, the largest shareholder in the Italian firm
with a roughly 20% stake, also said it would propose expanding
Telecom Italia's board from 13 to 17 members. Shareholders will
vote on Vivendi's proposals on Dec. 15.
Write to Nick Kostov at Nick.Kostov@wsj.com
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(END) Dow Jones Newswires
December 03, 2015 14:45 ET (19:45 GMT)
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