French media conglomerate Vivendi has increased its stake in Telecom Italia to 14.9 percent and replaced Telefonica as the Italian operator's largest shareholder. "This investment represents an opportunity for the group to be present and to expand in a market with significant growth prospects and a very strong appetite for quality content," said Vivendi in a statement, adding that it intends to support Telecom Italia over the long term.
The French group said it had received 8.24 percent of Telecom Italia shares from Telefonica as part-payment for the sale of its Brazilian broadband unit GVT, which closed on 28 May. In addition, Vivendi raised its ordinary shares in Telecom Italia from a “recently purchased” 1.9 percent to 6.66 percent on 22 June, representing a global cash payment of around EUR 1 billion.
In a subsequent statement to Spain's market regulator, Telefonica said it would make a capital gain after selling all of its shares in Telecom Italia of EUR 380 million. The positive impact will be booked in its first half results. The company has previously outlined plans to merge GVT with its Brazilian mobile unit Vivo, creating the country’s largest operator.
Telefonica divested its stake after the holding company that had controlled Telecom Italia for eight years, Telco SpA, was finally broken up, leaving Telco's four investors free to sell their shares. Vivendi chairman and top shareholder Vincent Bollore owns 7.46 percent of investment bank Mediobanca, one of Telco’s investors. However, Mediobanca CEO Alberto Nagel has already ruled out selling the bank's 1.6 percent stake in Telecom Italia to Vivendi.
