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General

Vivendi blasts TIM's EUR 2 bln writedown

Friday 9 November 2018 | 11:48 CET | News
Vivendi has again criticised the performance of Telecom Italia (TIM) since activist fund Elliott seized control of the operator’s board in May. Shortly after TIM published its quarterly results, the French media giant revealed that it voted against a decision by the operator’s board to proceed with a EUR 2 billion writedown on the goodwill of its core domestic business. The move was described as "shocking ... sudden, very unusual and very destabilising" by a spokesman for the French group cited by Reuters.

Asked whether Vivendi, which remains TIM’s largest shareholder with a 24 percent stake, would call a shareholder meeting to push for a board reshuffle, the spokesman said "Vivendi will not rule out anything to protect its interests", adding that Elliott was responsible for the fall in TIM's share price in view of its "total disorganisation and total lack of governance".

TIM earlier reported consolidated revenues of EUR 14.2 billion in the 9 months to 30 September, up 1.1 percent year-on-year on an organic basis but down 3.1 percent on a comparable basis. The company’s EBIT came to EUR 617 million, down 73 percent year on year due to the negative impact of the EUR 2 billion write-down. In its statement TIM said the decision to write down the goodwill “follows an impairment test and does not affect TIM’s cash flows and was due to the deterioration of the competitive and regulatory context and to increased interest rates.”




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Categories: General
Companies: Telecom Italia / TIM / Vivendi
Countries: Italy
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