Vivendi distanced away from a possible sale of its stake in Telecom Italia following a takeover bid for the operator from private equity investor KKR, insisting it remained a long-term investor and was determined to achieve success.
A Vivendi representative told Mobile World Live the company remained committed to Telecom Italia and had no plans to sell its stake.
The French group also explained KKR’s indicative offer of €0.505 per share did not adequately reflect the operator’s value.
Reuters reported Vivendi spent an average of €1.07 on its 24 per cent stake in Telecom Italia, so it would be making a loss based on KKR’s first bid.
While Vivendi appears reluctant to sell, it does not mean a potential deal is dead.
KKR has stated it would be willing to accept a minimum threshold of 51 per cent, meaning it does not necessarily need Vivendi’s support.
However, a deal would require backing from two-thirds of the board, which KKR would struggle to achieve without Vivendi on deck.
The deal also needs the go-ahead from Italy’s government, which holds special veto powers on a takeover.Subscribe to our daily newsletter Back