French media conglomerate Vivendi (EPA:VIV) today announced that it has upped its stake in Telecom Italia (BIT:TIT) to 19.9%.
According to Vivendi, the move confirms its “intention to support the telecoms group over the long term and to develop its activities in southern Europe.”
Vivendi said it values the total acquisition price at €3.054bn, or €1.14 per ordinary share.
The company entered the shareholding of the Italian incumbent earlier this year: the first 8.24% via a share exchange as part of its exit from Brazilian fixed-line player GVT, and another 6.66% by buying shares on the market.
Vivendi also exited French mobile operator SFR and Maroc Telecom, declaring an intention to focus on its core media business.
Observers are split over whether Vivendi views Telecom Italia as a distribution platform for its content, or whether its chairman Vincent Bolloré is simply acting as an activist investor in a company long seen as a takeover target. The Italian incumbent, which earlier this year announced content partnerships with Mediaset, Sky and Netflix, has said it is open to selling a further stake in tower spin-off Inwit. Another subsidiary, TIM Brasil, is expected to play a role in Brazilian M&A, either as a target, or a buyer of locally owned Oi.