Vivendi has prevailed in its attempt to gain four seats on the Telecom Italia board, as a slim majority of shareholders voted in favour of the French media group’s request to increase the number of board members from 13 to 17 to make way for four of its own representatives. Around 53 percent of shareholders backed Vivendi’s proposal at a 15 December meeting in a vote that needed a simple majority to pass. Vivendi CEO Arnaud De Puyfontaine and three other directors will now take their place on Telecom Italia’s board even though proxy shareholder advisers had previously said four seats would give the French company too much influence. However, de Puyfontaine had earlier told Corriere della Sera: "For a quality company like Telecom Italia, having a board that does not reflect its shareholder structure is like having a rudderless ship."
Earlier on in the same session Vivendi had successfully blocked a management-supported share conversion plan that would have diluted its 20.5 percent stake to around 13 percent. Vivendi’s decision to abstain from voting on the proposal was key to its rejection, with an unnamed source cited by Reuters indicating that the vote could amount to a vote of no confidence in Telecom Italia's current board. "We are sorry because we are missing an opportunity for the company ... but now that we have them on the board we will study the plan in the future, whenever the opportunity arises again," said Telecom Italia's chairman Giuseppe Recchi after the meeting.
Vivendi has invested over EUR 3 billion to increase its shareholding to around 20.5 percent of Telecom Italia this year after acquiring Telefonica’s 8.24 percent stake as part payment for its Brazilian company GVT.
