Vivendi Raises Stake in Telecom Italia

ROME—French media company Vivendi SA raised its stake in Telecom Italia SpA, as the biggest shareholder of the Italian telecommunications operator reached a level just below the threshold that would require it to launch a takeover bid, Vivendi said in a filing.

According to a Friday filing to the Securities and Exchange Commission, Vivendi bought the extra Telecom Italia shares on the market between March 1 and 9, reaching a 24.9% holding in the Italian company. Vivendi's previous stake was 23.8% as it has increased its holding over the past year.

Telecom Italia shares rose 5.5% Friday in Milan trading.

According to Italian securities regulations, an investor must make a takeover bid when it reaches a 25% stake in a publicly listed company.

Telecom Italia Chief Executive Marco Patuano went to Paris last week to meet with top management at Vivendi, as the French company applies more pressure on the executive to deliver a turnaround, a person familiar with the matter said last week.

After plowing more than €3.5 billion ($3.9 billion) into Telecom Italia, Vivendi is pushing Mr. Patuano to cut costs faster and address its game plan. The Italian firm is under pressure to deliver results after years of no revenue growth and of strategic zigzagging.

Since December, Vivendi has held four seats on Telecom Italia's board of directors, out of a total of 17.

Write to Liam Moloney at [e-mail]

(END) Dow Jones Newswires

March 11, 2016 15:15 ET (20:15 GMT)

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