Vivendi scotches KKR, Telecom Italia talk - Mobile World Live

Vivendi scotches KKR, Telecom Italia talk

23 NOV 2021
Stock photo of a person tearing up a sheet of paper, mimicking the breaking of a deal

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.



Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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