French media conglomerate Vivendi, currently Telecom Italia’s biggest shareholder with a 20.1 percent stake, has announced that it will abstain from voting on the Italian operator’s plan to convert its savings shares into ordinary stock at a 15 December meeting, meaning the plan is unlikely to be approved. If Telecom Italia completes its plan, Vivendi’s holding could be diluted to 13.9 percent.
Telecom Italia subsequently issued a statement defending the planned conversion, stressing that it was in the interests of all its shareholders and had been welcomed by analysts. “The conversion proposal, which the market had prompted for some time, was met with widespread appreciation from financial analysts, as confirmed by the performance of the shares on the stock market,” said the company.
Vivendi CEO Arnaud de Puyfontaine later told Corriere della Sera that he was "absolutely in favour" of the company’s savings share conversion but not under the proposed conditions, above all a cash payment of 9.5 eurocents for each saving share. The French group also asked for a fairness opinion on behalf of ordinary stock holders.
The 15 December meeting will also see shareholders voting on Vivendi’s request to increase the number of board members from 13 to 17 to make way for four of its own representatives. However, that request is also unlikely to pass since investment funds that hold around 65 percent of Telecom Italia’s capital are set to oppose it.
