Vivendi sticks to request of extraordinary vote on TIM's grid sale-source
Reuters
Published Oct 20, 2023 10:08
Updated Oct 20, 2023 14:55
MILAN (Reuters) -Telecom Italia (TIM) top investor Vivendi (EPA:VIV) remains convinced any decision on the sale of the former phone monopoly's landline grid needs to be put to an extraordinary shareholder vote, a source close to the French media giant said.
The clarification comes after Vivendi finance chief Francois Laroze, a member of the management board, on Thursday said the group wanted to express its position on a sale "officially in a shareholder meeting or in an extraordinary shareholder meeting".
The comment seemed to suggest Vivendi was opening up to the possibility of an ordinary shareholder vote - hence a simple majority - on the matter.
With its 24% voting stake in TIM, Vivendi has expressed strong reservations about a government-supported plan TIM is pursuing to sell the grid, its most valuable asset, to U.S. fund KKR.
An extraordinary shareholder vote - requiring a two-third majority - would give Vivendi a de facto veto power on the sale, which is at the heart of TIM CEO Pietro Labriola's plans to revamp the debt-laden company.
The French media group has sought a valuation of 30 billion euros ($32 billion) for the grid and warned the business left behind may struggle to sustain itself.
The binding offer KKR tabled this week values the grid, which include fibre and copper cables running from switching centres to customers' homes, above 20 billion euros, with roughly half the figure in debt, sources previously said.
TIM is leaning towards leaving the decision on the grid to its board after obtaining three legal opinions, another two people close to the matter separately told Reuters.
TIM may consult its shareholders but it would ultimately give its board full decision power, they said.
Vivendi no longer holds a board seat at TIM and would need to turn to the courts to challenge the directors' decision on the grid.($1 = 0.9455 euros)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.