Telecom Italia has agreed to put Vivendi‘s proposal for an enlarged board, with four seats to be held by the French media giant, to a shareholder vote next month.
Telecom Italia (BIT:TIT) shareholders will vote on Vivendi’s (EPA:VIV) proposa
The move, which would up the number of board seats from 13 to 17, has caused some local and international investors governance concerns. Vivendi’s 20.1% holding would be diluted to 13.7% if Telecom Italia’s own proposal to convert savings stock into ordinary stock is approved on 15 December. Assuming this goes ahead, the French media giant would control 23% of the enlarged board’s 17 seats but own only 13.7% of shares following the dilution.
Xavier Niel, who has acquired options for 15.1% of shares through NJJ Capital, would see his eventual holding diminish to around 10%.
Vivendi’s full proposal, in Italian, is here, while Telecom Italia’s share conversion proposal is here.