- A steady build on the open market has brought Vivendi (OTCPK:VIVHY) and its chief Vincent Bollore to just short of a 20% stake in Telecom Italia (TI +0.3%) -- about €3.05B worth ($3.4B).
- People familiar with Bollore's plans say he views TI as a financial investment where he'd ultimately want to influence strategy and create changes.
- The moves have been interesting (and seemingly contradictory) as Vivendi has been divesting telecoms, but Telecom Italia represents part of a southern media strategy when combined with Canal Plus in pay TV.
- TI CEO Marco Patuano says there's no problem in Vivendi's buildup. Last year, though, Italy reduced the threshold for a mandatory takeover offer to a 25% stake (from 30%) for large companies, a protection for minority shareholders.
- Meanwhile, Morgan Stanley has rated Vivendi at Overweight and set a €25 price target. Shares are up 2% in Paris, to €21.38, implying 17% upside in the target.
- Barclays has downgraded Telecom Italia to Underweight.
- Previously: Reuters: Vivendi eyeing around 19% stake in Telecom Italia (Oct. 02 2015)
- Previously: Telecom Italia: 'Always fine' if Vivendi raises stake (Oct. 01 2015)