(AOF) – Vivendi is among the largest increases in the CAC 40 on Monday, thanks to a rise of 1.76% to 11.24 euros, in the wake of the leap of Telecom Italia (TIM) in Milan, which has received a buyout offer from KKR. The investment fund specializing in private equity has proposed 0.505 euros per share to acquire the entire capital of the Italian operator and withdraw it from the listing. But the group of Vincent Bolloré, TIM shareholder with nearly 24%, does not intend to let go of its stake so easily.
“We have been present there for a long time and for a long time,” declared a Vivendi spokesperson to Les Echos. The media giant has also denied press rumors that it is preparing a counter-offer with CVC or Advent funds or speculating on its intention to withdraw from Telecom Italia. Contacted by AOF, Vivendi was not immediately reachable for comments.
An exit from TIM would be all the more surprising given that the price offered by KKR is clearly below that at which the French built its stake. The French had indeed paid an average of 1.07 euros per share, and had recorded a book value of 0.83 euros in the first half of 2021, reports Jefferies.
Vivendi also insisted to the daily on its “wish to work alongside the Italian authorities and institutions for the long-term success of TIM”. Because the operator has been plagued by great difficulties for several years: loss of market share, heavy investments in fiber, significant debt, execution problems … Difficulties that are felt in the stock market price, in decline of nearly 20% for 3 years, despite an increase of 15% since early 2021 thanks to the leap of the day.
“Vivendi would rather seek the support of other shareholders to replace Luigi Gubitosi, managing director of TIM, whom he blames for the operational weakness of recent years”, speculates for its part Invest Securities.
Contacted by AOF, Vivendi was not immediately reachable for comments.
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