KKR’s offer is lower than the expectations of Vivendi, Telecom Italia’s main shareholder. DADO RUVIC / REUTERS
Main shareholder of the Italian operator, the French media giant contests the decision of the board of directors which it considers “illegal”.
The French media giant Vivendi announced this Sunday, November 5, its intention to “use all legal means at your disposal” For “challenge” decision “illegal» of the board of directors of Telecom Italia (TIM) to sell its fixed network to the American investment fund KKR. With 23.75% of the shares, he is the main shareholder.
“The rights of Telecom Italia shareholders have been trampled on», Estimated in a press release Vivendi, which had requested in vain the holding of an extraordinary general meeting of shareholders to decide on the offer. “The board of directors of Telecom Italia thus deprived each shareholder of the right to express their opinion at a meeting, as well as the associated right of withdrawal for shareholders in disagreement.», Notes Vivendi, the main shareholder of the Italian group with a share of 23.75%.
An offer far from Vivendi’s expectations
The board of directors of Telecom Italia approved on Sunday the firm offer for its fixed network submitted by KKR, associated with the Meloni government. The offer values the network at 18.8 billion euros, excluding Sparkle, a subsidiary specializing in submarine cables, and the total amount of the transaction can reach 22 billion euros, under certain conditions, explains TIM. This proposal remains far from the expectations of Vivendi, which was banking on 31 billion euros.
“Five legal opinions have confirmed that the transfer of the entire infrastructure network» of Telecom Italia would have “necessity of a prior modification of the statutes of Telecom Italia, a decision relating only to the extraordinary general meeting of shareholders», further argues Vivendi.
“We always remain open to dialogue and proposals submitted to us, in particular by the largest shareholders.», Assured Pietro Labriola, CEO of Telecom Italia. “Let’s get back to work» to implement this “big historic decision by the board of directors today“, he said in a press release.
If the project comes to fruition, despite the many obstacles that still remain to be overcome, Telecom Italia would become the first major operator in Europe to take the plunge and separate from its fixed network to reduce its heavy debt – 14 billion euros.