By Matthew Curtin

 

PARIS--France's Vivendi SA (VIV.FR) said Tuesday it has had no contact with Xavier Niel, a French telecommunications tycoon, over its plans for its investment in Telecom Italia (TI) in a statement clarifying its intentions to Italy's stock-market watchdog.

The French pay-television and music group, controlled by its Chairman Vincent Bollore, reaffirmed it holds 20.116% of the Italian telecom group's ordinary shares.

The statement comes after Vivendi requested four seats on Telecom Italia's board at the weekend in a move aimed at exerting greater influence over the Italian telecom company and outmaneuvering Mr. Niel who has recently taken a sizable stake in the group.

Telecom Italia said Sunday evening it had received a request by Vivendi to name the four representatives to its board at the group's next shareholder meeting, scheduled for Dec. 15. The French group, the largest shareholder in the Italian firm, also said it would propose expanding Telecom Italia's board to 17 from 13 members.

Vivendi's request comes after building up its stake in Telecom Italia over the summer.

At the same time, Mr. Niel, founder of French telecom operator Iliad SA, has bought options that, if exercised would give him a 15% stake in Telecom Italia.

Soon after Mr. Niel's stake was announced, Telecom Italia presented a share conversion plan that appeared to be a defensive move. Yet when announcing the plan, the operator said it was aimed at increasing the free float and simplifying its capital structure.

The plan, which shareholders will take up at their December meeting, would see the conversion of the company's savings shares--which have no voting rights and command a lower price--into ordinary stock, which have voting rights.

On Tuesday, Vivendi said it held no savings shares and had "no contacts have occurred with the members of the board of directors of Telecom Italia or with other parties informed of the proposal with respect to the decision of conversion of savings shares before the meeting of the board of directors of Telecom Italia held on Nov. 5."

Write to Matthew Curtin at matthew.curtin@wsj.com

 

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 17, 2015 03:28 ET (08:28 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
Telecom Italia (NYSE:TI)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Telecom Italia Charts.
Telecom Italia (NYSE:TI)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Telecom Italia Charts.