Vivendi ready to cross swords in the Telecom Italia case

Published on Nov 6, 2023 at 5:48 p.m.Updated Nov. 6, 2023 at 6:15 p.m.

Italy does not bring luck to Vivendi. In 2015, the French group invested in Telecom Italia (TIM), amount in capital when the price was at its highest, to the point of becoming the largest shareholder, with 23.75% of the shares today. The following year, the group controlled by the Bolloré family joined forces with Mediaset, in an alliance which ended in court, with 5 years of procedures completed by an agreement in 2021. The commitment of Vivendi in TIM could well take the same path.

On Sunday, the board of directors of Telecom Italia gave its agreement to the KKR fund offer for the purchase of its fixed network (Netco) for 18.8 billion euros. This amount, lower than the 22 to 23 billion euros previously mentioned, could certainly rise to 22 billion euros, but under certain conditions. This will depend on the effect on the valuation of the transfer of part of the debt to Netco, and price supplements which would be paid in certain cases, such as a merger of Netco with the fiber specialist Open Fiber, according to the broker Kepler Cheuvreux, or favorable regulatory changes.

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