Argentine competition regulator CNDC has cleared the break-up of Telecom Italia holdco Telco Spa, making Vivendi the Rome-based carrier’s single largest shareholder.Telco, whose shareholders are Telefonica, Generali, Intesa Sanpaolo and Mediobanca, was…
Argentine competition regulator CNDC has cleared the break-up of Telecom Italia holdco Telco Spa, making Vivendi the Rome-based carrier’s single largest shareholder.
Telco, whose shareholders are Telefonica, Generali, Intesa Sanpaolo and Mediobanca, was set up in 2007 to fight a takeover of Telecom Italia by AT&T and America Movil. Telco currently holds 22.4% of the Italian group.
Telefonica will transfer its 8.3% voting rights in Telecom Italia to French media group Vivendi, as part-payment for GVT, which it has sold to the Spanish group for €7.5bn. The other three shareholders may now sell their shares.
The CNDC clearance was the last step in the sale of GVT, which received Brazilian regulatory approval last month.
In a statement earlier today, Vivendi said it would receive €4.2bn (US$4.59bn) before taxes, and would pay dividends of €1 per share on 29 June 2015 and 3 February 2016.
Commenting on the company’s relationship with its new shareholder, TI CEO Marco Patuano recently said: “Pending ownership developments, the relationship with [Vivendi Chairman Vincent] Bollore today is that with a big media company.”
Vivendi CEO Arnaud de Puyfontaine has recently described the company’s stake in Telecom Italia as “opportunistic”.
Vivendi, he said, saw the stake as a way to de-risk the transaction from currency impact, and “an opportunity to create a link with the company”.
He added that Vivendi, which has now exited telecoms investments in France, Brazil and Morocco, does not intend to re-enter the telecoms business.
However, de Puyfontaine pointed out that the company will seize any opportunities that add value to its media and content business, possibly hinting at speculation that the French group is looking to increase its position in Telecom Italia and merge it with Italian broadcasting giant Mediaset.
