Vivendi, a leading French investment company, has confirmed the reduction of its stake in Telecom Italia (TIM). The company has lowered its holding from 23.8% to 18.4% as of March 18, with CEO Arnaud de Puyfontaine stating the intention to completely offload Vivendi’s stake in the future.
This decision was anticipated by industry observers due to the strained relationship between Vivendi and TIM. A significant point of contention was TIM’s agreement to sell its fiber network infrastructure to the American investment firm KKR. Valued at €22 billion, Vivendi argued this deal underestimated the company’s assets and sought to nullify it through legal means. As recently as last year, Vivendi filed a legal challenge, claiming the sale violated TIM’s governance rules.
Earlier this year, the ownership landscape of TIM underwent transformation when Poste Italiane acquired Cassa Depositi e Prestiti (CDP)’s 9.8% stake in the operator. TIM plays a critical role in Italy’s digital infrastructure, and the government aims for alignment of strategic interests. Poste Italiane, with its large mobile virtual network operator segment, is seen as a more suitable partner in this regard compared to CDP.
Additionally, speculation has arisen about Iliad Italia potentially merging with TIM after informing the Italian government of its exploration of strategic options. Such consolidation could trigger significant regulatory inquiries, as it would reduce market competitors from four to three and transfer a major part of Italy’s largest operator to foreign hands.
