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Telecom Italia Deal Challenged by Vivendi

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Andrew R. Michaud

• December 15, 2023

Telecom Italia Faces Legal Challenge from Vivendi over Sale of Fixed-line Network Assets

Telecom Italia has received a legal notice from Vivendi, challenging the legitimacy of its deal to sell its fixed-line network assets to KKR. Vivendi, a French conglomerate that holds approximately 24% of Telecom Italia, did not request any precautionary measures or an urgent injunction to halt the execution of the board's resolution on the deal with the private equity company.

Proceeding as Planned

Despite the legal challenge, Telecom Italia announced that the activities outlined in the agreements with KKR, aimed at finalizing the transaction, will proceed as planned without any delay or interruption. This development follows Telecom Italia's board approving the sale of its fixed-line network to KKR for a sum exceeding $20 billion in early November. The sale is part of a broader strategy by Telecom Italia to reduce debt.

Dispute over Shareholders' Vote

Vivendi criticized the board's decision to accept the deal without obtaining a vote from shareholders and pledged to use "any legal means at its disposal" to contest the decision. However, no concrete action has been taken by Vivendi thus far.