Telecom Italia has failed to gain approval for its proposed savings share conversion, a cost efficient measure that would also have diluted the holdings of Vivendi and Xavier Niel. The move is likely test the relationship between the Italian incumbent and French media group, which until today had been cordial.
Telecom Italia‘s (BIT:TIT) proposed share conversion plan has failed to gain a two-thirds majority vote at today’s EGM, after 20% shareholder Vivendi (EPA:VIV) abstained.
The measure, which the French media group had initially said indicated it would support, would have lowered costs for the Italian incumbent and contributed to its plan to raise €3bn in 2016. It also would have diluted the holdings of Vivendi and eventual shareholder Xavier Niel’s NJJ Capital.
Following the vote, chairman Giuseppe Recchi reportedly defended the record of the current management board, pointing to the share price’s 40% gain over the last year.
Shareholders are also due to vote on Vivendi’s proposal to fill four new board seats with three of its executives and a French consultant. If that measure gains a simple majority, the number of board seats will rise to 17, with Vivendi controlling 23% of them.
A third French group, incumbent Orange (EPA:ORA), has meanwhile been repeatedly linked to interest in an acquisition of Telecom Italia – something CEO Stéphane Richard has both suggested and denied in public remarks.