Vivendi Raises Stake in Telecom Italia
12 March 2016 - 7:30AM
Dow Jones News
ROME—French media company Vivendi SA raised its stake in Telecom
Italia SpA, as the biggest shareholder of the Italian
telecommunications operator reached a level just below the
threshold that would require it to launch a takeover bid, Vivendi
said in a filing.
According to a Friday filing to the Securities and Exchange
Commission, Vivendi bought the extra Telecom Italia shares on the
market between March 1 and 9, reaching a 24.9% holding in the
Italian company. Vivendi's previous stake was 23.8% as it has
increased its holding over the past year.
Telecom Italia shares rose 5.5% Friday in Milan trading.
According to Italian securities regulations, an investor must
make a takeover bid when it reaches a 25% stake in a publicly
listed company.
Telecom Italia Chief Executive Marco Patuano went to Paris last
week to meet with top management at Vivendi, as the French company
applies more pressure on the executive to deliver a turnaround, a
person familiar with the matter said last week.
After plowing more than €3.5 billion ($3.9 billion) into Telecom
Italia, Vivendi is pushing Mr. Patuano to cut costs faster and
address its game plan. The Italian firm is under pressure to
deliver results after years of no revenue growth and of strategic
zigzagging.
Since December, Vivendi has held four seats on Telecom Italia's
board of directors, out of a total of 17.
Write to Liam Moloney at liam.moloney@wsj.com
(END) Dow Jones Newswires
March 11, 2016 15:15 ET (20:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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