{"id":42606,"date":"2023-11-05T23:29:35","date_gmt":"2023-11-05T23:29:35","guid":{"rendered":"https:\/\/prosfunds.com\/business\/telecom-italias-kkr-deal-sparks-threat-of-legal-action-by-vivendi\/"},"modified":"2023-11-05T23:29:35","modified_gmt":"2023-11-05T23:29:35","slug":"telecom-italias-kkr-deal-sparks-threat-of-legal-action-by-vivendi","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=42606","title":{"rendered":"Telecom Italia\u2019s KKR deal sparks threat of legal action by Vivendi"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=da531328-174d-49b8-997e-9f3850a21825\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Telecom Italia is being threatened with legal action from Vivendi, its single largest shareholder, after accepting KKR\u2019s offer of up to \u20ac22bn for the telecoms group\u2019s fixed-line phone and internet network.<\/p>\n<p>Telecom Italia\u2019s board of directors approved the sale on Sunday in a majority vote. It comes two years after the private equity firm\u2019s first \u20ac33bn takeover offer which envisaged taking the company private.<\/p>\n<p>In response, the French media conglomerate said in a statement that it \u201cdeeply regrets\u201d the board accepting the offer without requesting a \u201cvote from its shareholders\u201d. It added that it will \u201cuse any legal means at its disposal to challenge this decision\u201d.<\/p>\n<p>However, the board said the decision to accept the offer was of its \u201cexclusive competence\u201d. It also mandated chief executive Pietro Labriola to sign contracts and verify the possibility of receiving a binding offer at a higher value for its submarine network Sparkle.<\/p>\n<p>Under the deal, expected to close next summer, Telecom Italia said it will reduce its \u20ac26bn debt pile by around \u20ac14bn. The junk-rated company also said the transaction will reduce regulatory constraints in its domestic market, which have hindered its growth, and will help it to maintain strategic flexibility.<\/p>\n<p>Telecom Italia hopes the plan will improve the company\u2019s share price, which has plummeted to \u20ac0.26 per share, but it has long been opposed by Vivendi. The conglomerate, owned by the Bollor\u00e9 family, holds a 23.75 per cent stake and more than 17 per cent of Telecom Italia\u2019s voting rights. <\/p>\n<p>The French group has invested more than \u20ac4bn in building the stake over the past eight years and has had to write down its investment twice as Telecom Italia\u2019s valuation has fallen amid high debt, multiple management overhauls, lower margins and increased domestic competition.\u00a0<\/p>\n<p>Vivendi has previously rejected plans to separate the network from the group\u2019s services business, saying Telecom Italia had undervalued it.\u00a0<\/p>\n<p>Labriola was put in place, with Vivendi\u2019s backing, two years ago after his predecessor was ousted over KKR\u2019s first offer. He has since become the main sponsor of KKR\u2019s plan to split and turn round the business. <\/p>\n<p>\u201cTwo years of hard work with our heads down wrap up with a historic decision which will see the creation of two separate companies with entirely new development perspectives,\u201d he said in a statement.<\/p>\n<p>The Italian government, which can veto deals involving telecommunications infrastructure, greenlighted the deal last month.\u00a0Rome\u2019s department of the Treasury plans to spend more than \u20ac2bn in taking a 20 per cent stake in the network company, alongside KKR, to oversee an asset which it deems strategic. <\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/da531328-174d-49b8-997e-9f3850a21825\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Telecom Italia is being threatened with legal action from Vivendi, its single largest shareholder, after accepting KKR\u2019s offer of up to \u20ac22bn for the telecoms group\u2019s fixed-line phone and internet network. Telecom Italia\u2019s board of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-42606","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Telecom Italia\u2019s KKR deal sparks threat of legal action by Vivendi | Prosfunds<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Telecom Italia is being\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prosfunds.com\/?p=42606\" 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