Vivendi says to hold onto Telecom Italia stake

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MILAN, Nov 23 (Reuters) – Vivendi (VIV.PA) has no plans to promote its stake in Telecom Italia (TLIT.MI), the French group mentioned on Tuesday, reiterating it was a long-term investor in Italy’s largest telephone group and wished to work with all stakeholders for its success.

The feedback got here after U.S. fund KKR (KKR.N) made a non-binding proposal for the previous telephone monopoly at an indicative worth of 0.505 euros a share, which Vivendi mentioned didn’t adequately replicate 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.

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“Vivendi wishes to clarify that the group is very attached to Italy and to Telecom Italia (and) has no intention to sell its stake in Telecom Italia,” a spokesperson for the corporate mentioned.

KKR’s proposal, which provides TIM an fairness worth of 10.8 billion euros rising to 33 billion when considering web debt, is geared toward taking personal Italy’s essential telephone firm.

KKR has set a minimal acceptance threshold of 51% for its supply, which means Vivendi’s backing is just not vital for it to undergo.

However, pushing via extraordinary resolutions requires a two-thirds majority and KKR would wrestle to flip TIM round with out its high investor onboard.

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Reporting by Agnieszka Flak, enhancing by Gianluca Semeraro and Valentina Za

French media giant Vivendi's logo is pictured at the main entrance of the entertainment-to-telecoms conglomerate headquarters in Paris, France, August 12, 2020.    REUTERS/Charles Platiau/File Photo

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