Vivendi Reduces Its Stake in Telecom Italia

Vivendi reduced its stake in Telecom Italia and now owns under 20% of shares in the Italian operator. The sale is a part of the French group’s strategy to divest its holdings in the operator.

As of 18 March, Vivendi said it cut its stake from 23.8% to 18.4% and 13.2% of its share capital. Vivendi CEO Arnaud de Puyfontaine confirmed this month it plans to sell its entire stake in Telecom Italia, as it no longer considers its holdings in the company to be strategic. Speaking after an earnings announcement, Puyfontaine said that when the company is in a position to exit on good terms, it will do it.

Puyfontaine’s comments came a few months after Bloomberg reported CVC Capital Partners had entered into early stage discussions about buying Vivendi’s stake, in a deal worth around €1 billion. Financial groups Bain Capital and Apax Partners have also apparently shown an interest.

Vivendi first invested in Telecom Italia in 2015 and the pair have had an up-down relationship. In the past, there have been numerous clashes over leadership and strategy. In late 2023, the pair even entered into a legal battle over Telecom Italia’s plans to sell its fixed network assets.