There is never a dull moment at Telecom Italia, with this latest chapter ushering in a second heavyweight French investor. So far, both Vivendi and Iliad founder Xavier Niel have denied that they are working in concert with other players, such as Orange or Naguib Sawiris.
Telecoms investor Xavier Niel has insisted that NJJ Holding’s options to own a 15.43% stake in Telecom Italia (BIT:TIT) are held independently and that he is not working with other companies.
“NJJ Holding confirms it is acting on its own behalf and not in concert with other parties,” the group said in a statement.
NJJ said that the call options and call spread options, held through Rock Investments, were European style [rather than US style] and expired between June 2016 and November 2017. The options do not carry voting rights.
The statement followed a two hour meeting with Italian stock market authority Consob, which yesterday summoned Niel to clarify his entry last week into the shareholding of Telecom Italia.
Had the derivatives been US style, reported Milano Finanza, Niel would have been able to hold the shares from the outset. In this way, he would have been able to call a shareholders meeting to elect a new management board. He also would have been able to resell the shares, possibly leading to a short-term takeover by a third party.
But because they are European in style, Niel would have to wait for the options to expire before taking physical possession of Telecom Italia shares.
Telecom Italia chairman Giuseppe Recchi met with Niel over the weekend and described him as a “friendly shareholder,” ruling out speculation that the Iliad founder might have been working alongside another investor such as Vivendi (EPA:VIV).
Arnaud de Puyfontaine, CEO of the French media giant, has for his part denied having any contact with Niel.
De Puyfontaine also denied French press reports that Vivendi was acting on behalf of Orange (EPA:ORA) or Egyptian telecoms billionaire Naguib Sawiris, both of which have previously voiced interest in the Italian incumbent.
He ruled out a full takeover of Telecom Italia by Vivendi, but did not rule out raising its shareholding from the current 19.9% to the 24.9% takeover threshold. “Never say never,” he reportedly said, but emphasised that a full takeover would “not be consistent with our position not to become owners of telecoms operations.”
Following billionaire Vincent Bolloré’s entry into Vivendi, the company exited telecoms assets in France, Morocco and Brazil, only to become Telecom Italia’s largest shareholder just months later.
Observers are split over whether Vivendi views Telecom Italia as a distribution platform for its content – as de Puyfontaine has repeatedly insisted – or whether Bolloré is simply an activist investor in a company long seen as a takeover target.
While Bolloré has so far been careful to align himself with Telecom Italia management and the Italian government, Niel’s brasher entry is already causing waves – especially since he does not have a history of passive investment.
