France’s Vivendi Raises Telecom Italia Stake Up To 19%

France’s Vivendi Raises Telecom Italia Stake Up To 19%

France’s Vivendi has stepped to raise its stake in Telecom Italia to around 19 percent of the normal share capital, said four people acquainted with the matter, in an offer to build its impact at the group.

A few banks have organized subsidiary contracts for Vivendi which will bring about the French company drove by Vincent Bollore, Chairman adding to its present holdings of 15.49 percent of Telecom Italia, said one of the sources.

Two other people said Vivendi had utilized subsidiary contracts to raise its stake. A fourth individual said the shares were purchased on the open market however did not determine timing.

Vivendi and Telecom Italia declined to comment.

With Telecom Italia seen by area executives and financiers as a potential takeover focus on, the 63-year old Breton billionaire needs to play king-maker in the coming combination, one of the sources said, adding France’s Orange and Deutsche Telekom could be keen on a tie-up with the Italian group.

Telecom Italia shares have risen almost 20 percent since the begin of the year, giving it to a market capitalization of euros 19.5 billion ($21.8 billion).

Vivendi got to be Telecom Italia’s greatest shareholder when it got a 8.3 percent shares as payment for selling Brazilian broadband group GVT to Spanish bearer Telefonica.

The French company then started buying additional shares taking after the Telco’s disintegration venture vehicle that used to hold 22.4 percent of Telecom Italia in the interest of Telefonica and three Italian financial foundations.

The stake-building in Telecom Italia has made Bollore, Vivendi’s greatest shareholder, a noteworthy player in European telecoms again just months after the group wrapped up every one of the three of its versatile businesses.

It has likewise made him more persuasive in Italy where Bollore claims just shy of 8 percent of venture bank Mediobanca.

Company Vivendi could stake to a claim on no less than two seats on board of Telecom Italia yet has not done yet, with its officials essentially saying the group is a long haul investor in the Italian company.

Back in August, when Bollore met Italian Prime Minister Matteo Renzi, a source near the matter said the French businessman was not seeking to direct the Italian company’s strategy.

Be that as it may, a few sources said Vivendi could in any case add to its stake to concrete control over the company.

Vivendi additionally sees the move as an approach to venture into a promising European market, as indicated by a sources’ portion, while guaranteeing more extensive conveyance of substance created by backups Universal Music Group and French pay-TV administrator Canal Plus.

October 3rd, 2015 by