Telecom Italia's board of directors voted Wednesday to appeal a ruling from Italy's securities regulator CONSOB that said French media giant Vivendi had acquired de facto control of the former Italian state monopoly even though its ownership share fell just short of the level indicated by law.
Vivendi owns 24 percent of Telecom Italia's shares, just below the 25-percent threshold used to indicate a controlling share. But CONSOB ruled Sept.13 that the Paris-based company had de facto control of the former Italian state
telecommunications monopoly as evidenced by its influence over the company's board.
As such, half of Telecom Italia's board was nominated by Vivendi, and it is not a big surprise the board voted to appeal the CONSOB ruling. The appeal is likely to draw out the process, which is now likely to last into 2018.
In a statement explaining the decision to appeal, the board said no rules had been broken. While assuring the company's full compliance with the discipline such qualification requires, the board has confirmed with a majority vote the intention to contest the decision, the statement said, referring to the CONSOB ruling.
Vivendi, which is the largest single shareholder in Telecom Italia, denies that it exercises control over the Italian company.
Vivendi owns 24 percent of Telecom Italia's shares, just below the 25-percent threshold used to indicate a controlling share. But CONSOB ruled Sept.13 that the Paris-based company had de facto control of the former Italian state
telecommunications monopoly as evidenced by its influence over the company's board.
As such, half of Telecom Italia's board was nominated by Vivendi, and it is not a big surprise the board voted to appeal the CONSOB ruling. The appeal is likely to draw out the process, which is now likely to last into 2018.
In a statement explaining the decision to appeal, the board said no rules had been broken. While assuring the company's full compliance with the discipline such qualification requires, the board has confirmed with a majority vote the intention to contest the decision, the statement said, referring to the CONSOB ruling.
Vivendi, which is the largest single shareholder in Telecom Italia, denies that it exercises control over the Italian company.
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