Argentina’s antitrust authority CNDC has approved the demerger of Telecom Italia's holding company Telco SpA, paving the way for Vivendi to become the Italian operator’s largest shareholder. The breakup of the 8-year pact, which controls Telecom Italia via a 22.4 percent holding, was confirmed in a Telco board meeting held last year, with all three Italian partners in the group deciding to unwind their interests to focus on their core banking or insurance businesses. However, the demerger process has been held up by delays in securing regulatory approval from the CNDC. “The demerger will materialise through the transfer to four new companies, each owned by Telco’s actual shareholders,” said the CNDC in a document dated 22 May, according to Bloomberg.
Telco’s Italian shareholders Assicurazioni Generali, Intesa Sanpaolo and Mediobanca may now proceed to sell their shares, depending on market conditions, to focus on their core banking or insurance businesses. What is clear is that leading Telco investor Telefonica will be replaced by Vivendi, which will receive an 8.3 percent voting stake in Telecom Italia as part-payment for its Brazilian broadband unit GVT.
