Vivendi CEO Tries to Reassure Telecom Italia Shareholders

PARIS—Vivendi SA moved Thursday to assuage the worries of Telecom Italia shareholders that the French media company might be trying to tighten its grip on the Italian firm with a plan to name four members to its board.

"Vivendi has no plan to exercise a relevant influence on the company nor to integrate the two groups, but rather to add value to the already high quality and standing of the current board and management," Vivendi CEO Arnaud de Puyfontaine said in a letter.

The executive's three-page defense was a response to a group of investors—including APG Asset Management NV, Legal & General Investment Management Ltd. and Standard Life Investments Ltd.—that raised concerns about Vivendi's plan.

A Nov. 30 letter, signed by the investors' coordinator Marco Vicinanza, said Vivendi's proposal would decrease the influence of independent minority members appointed by institutional investors and affect corporate governance.

In response, Vivendi said its four chosen board members should "act in the sole interest of [Telecom Italia] and all its shareholders."

Vivendi has also come under fire from two influential proxy advisory firms.

Proxy advisory firm ISS recommended that Telecom Italia shareholders oppose the appointment of Vivendi's nominees, saying there is no "strong rationale" for the changes. On Wednesday, proxy firm Glass Lewis also advised shareholders to vote against the proposals.

Vivendi didn't respond to the proxy firms in its letter Thursday.

The French group, the largest shareholder in the Italian firm with a roughly 20% stake, also said it would propose expanding Telecom Italia's board from 13 to 17 members. Shareholders will vote on Vivendi's proposals on Dec. 15.

Write to Nick Kostov at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

December 03, 2015 14:45 ET (19:45 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.