Vivendi Gains A Voice At Telecom Italia Table

   (FROM THE WALL STREET JOURNAL 12/16/15) 
   By Giada Zampano 

MILAN -- French media company Vivendi SA secured four seats on Telecom Italia SpA's board, winning a battle to gain greater influence at the struggling telecom operator.

Almost 53% of Telecom Italia shareholders approved Vivendi's request to increase the number of the company's board members to 17 from 13 and appoint four directors representing the French company.

Vivendi also blocked a share-conversion plan proposed by Telecom Italia's management that would have heavily diluted Vivendi's stake.

Tuesday's vote on the board appointments will give Vivendi, which is Telecom Italia's largest shareholder, a stronger say over the strategy of the heavily indebted Italian operator, suffering for years from fierce competition in its domestic market and a continued turnover of top shareholders.

The four Vivendi directors will be Arnaud de Puyfontaine, Vivendi's chief executive; Stephane Roussel, chief operating officer; Herve Philippe, its finance chief; and Felicite Herzog.

Controlled by French industrialist Vincent Bollore, Vivendi has spent more than 3 billion euros ($3.29 billion) to acquire a 20% stake in Telecom Italia. That investment has made it Telecom Italia's largest shareholder but Vivendi had no directors until now.

Vivendi won't change Telecom Italia's strategy much in the short term but could look to sell and distribute its content to the Italian company's customers, a person familiar with the matter said.

On Sunday, Mr. de Puyfontaine said he was "absolutely in favor" of plans to improve Italy's broadband Internet infrastructure.

(END) Dow Jones Newswires

December 16, 2015 02:48 ET (07:48 GMT)

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