MILAN (Reuters) – Vivendi has no plans to promote its stake in Telecom Italia, the French group mentioned on Tuesday, reiterating it was a long-term investor in Italy’s largest cellphone group and needed to work with all stakeholders for its success.
The feedback got here after U.S. fund KKR made a non-binding proposal for the previous cellphone monopoly at an indicative value of 0.505 euros a share, which Vivendi mentioned didn’t adequately mirror Telecom Italia’s (TIM) worth.
Vivendi has spent on common 1.07 euros a share for its 24% TIM stake, and carries it on its books at 0.83 euros.
“Vivendi needs to make clear that the group may be very connected to Italy and to Telecom Italia (and) has no intention to promote its stake in Telecom Italia,” a spokesperson for the corporate mentioned.
KKR’s proposal, which supplies TIM an fairness worth of 10.8 billion euros rising to 33 billion when bearing in mind web debt, is aimed toward taking non-public Italy’s principal cellphone firm.
KKR has set a minimal acceptance threshold of 51% for its supply, that means Vivendi’s backing just isn’t essential for it to undergo.
Nevertheless, pushing via extraordinary resolutions requires a two-thirds majority and KKR would wrestle to show TIM round with out its prime investor onboard.
(Reporting by Agnieszka Flak, enhancing by Gianluca Semeraro and Valentina Za)