Italy court rejects Vivendi move to block Telecom Italia sale

An Italian court said Tuesday it had rejected an appeal by French media giant Vivendi against the sale of Telecom Italia’s fixed-line network to American investment fund KKR.

Vivendi — the main shareholder of Telecom Italia (TIM) with a 23.75 percent stake — had asked the court in December 2023 to reject the sale, arguing that it was “illegal” because it was not submitted for prior approval by shareholders.

But Vivendi’s claims “were declared inadmissible”, court president Fabio Roia wrote in a statement announcing the ruling made on Monday.

Vivendi said in a statement that it would file an appeal after the court dismissed its challenge “on purely formal grounds”.

The French firm “continues to believe that the sale of TIM’s network should have been subject to a vote at a Shareholders Meeting,” the company said.

TIM’s board approved the sale of the fixed-line network to KKR for up to 22 billion euros in November 2023.

Vivendi, which has not sat on the board since January 2023, valued the fixed-line network at about 31 billion euros.

The sale, which was completed in June, was aimed at reducing TIM’s heavy debt load.

Rumours have swirled for months that Vivendi could soon sell its share in TIM, but the French firm has declined to comment.

Vivendi is not new to such disputes, having fought a years-long legal battle with Italian television group Mediaset that ended in 2021 when the two firms agreed to end their disagreements.