TIM, Vivendi at odds over network sale
TIM needs feedback from Vivendi over options
Vivendi took a back seat as investor
MILAN, Dec 27 Reuters Telecom Italia TIM is seeking to engage with its main shareholder Vivendi to try to eliminate a dual class of shares and simplify its structure following the sale of its landline grid, two sources said.
Relations have been strained by Vivendi39;s opposition to TIM39;s decision to sell its prized network to a consortium of investors led by U.S. fund KKR and including the Italian Treasury.
TIM CEO Pietro Labriola needs to establish whether Vivendi would support some steps that require approval from a qualified majority of shareholders, two sources with knowledge of the matter told Reuters.
TIM and Vivendi declined to comment.
The Parislisted group, which this month became a holding company following an asset spinoff, has a near 24 stake in TIM.
Labriola is studying how eliminate a dual class of shares to protect TIM39;s cashflow and streamline the company39;s structure, as part of efforts to resume dividend payments that TIM halted in 2022.
One of the possibilities TIM is considering is the repurchase, at least in part, and the cancellation of its savings shares which give holders a right to a dividend if the parent company delivers a profit the people said.
They asked not to be named because deliberations are not public.
Another step the former phone monopoly is evaluating is incorporating into the parent company two…