Vivendi to Appeal Italian Regulator Decision on Telecom Italia
September 14 2017 - 7:33AM
Dow Jones News
By Pietro Lombardi
Vivendi SA (VIV.FR) said late Wednesday it would appeal a
decision by Italy's securities market regulator which deemed that
the French media conglomerate has de facto control over Telecom
Italia SpA (TIT.MI).
"Vivendi formally contests that interpretation and will appeal
to the competent courts," the company said.
The ruling by Consob, the Italian watchdog, could have
consequences for the French group, among which might be the
consolidation of Telecom Italia's debt on Vivendi's own balance
sheet. Telecom Italia said it had adjusted net financial debt of
25.1 billion euros ($29.9 billion) at June 30.
Vivendi has a stake of nearly 24% in Telecom Italia while, of
the operator's 15 board members, the French company has proposed at
least nine. In June, Vivendi's chief executive Arnaud de
Puyfontaine became Telecom Italia's executive chairman.
Vivendi has previously acknowledged it directs and coordinates
activities at Telecom Italia, but denied having de facto control
under Italian law. Telecom Italia also contested Consob's decision.
The ruling contrasts with typical interpretations of corporate
control in Italy, the company said.
The Italian government has also been investigating whether
Vivendi has de facto control of Telecom Italia, a sign of its
concern over a strategic national asset falling into foreign
ownership.
Vivendi is fighting other regulatory battles in Italy. Earlier
this year, Italy's communications regulator ruled that Vivendi
can't hold large stakes in Mediaset SpA (MS.MI) and in Telecom
Italia, since the investments violate antitrust regulations.
On Wednesday, the regulator said it received a plan from Vivendi
to address this issue through the transfer of at least a 19.19%
tranche of Mediaset shares to an independent entity.
-Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
September 14, 2017 07:18 ET (11:18 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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