Telecom Italia shares up on potential Vivendi stake sale

Investingcom -- Shares of Telecom Italia (ETR:TLIT ) jumped on Monday following a report from Corriere della Sera that a consortium of investors is considering the acquisition of Vivendi (OTC:VIVHY )'s stake in the Italian telecom giant. 

At 6:52 am (1052 GMT), Telecom Italia was trading 2.8% higher.

The consortium reportedly includes Andrea Pezzi, a former Vivendi consultant in Italy, and Claudio Costamagna, the former president of state lender Cassa Depositi e Prestiti.  Although both Pezzi and Costamagna denied involvement when contacted by Corriere della Sera.

The potential sale, which is said to be in an "embryonic" stage, would require the approval of the Italian government. With its “golden power” prerogative, the government holds the authority to scrutinize takeovers of companies deemed to play a strategic role in the nation's economy, such as those in the telecommunications sector. 

While the government has not yet commented on the matter, the possibility of such a high-profile transaction has heightened market anticipation.

Furthermore, the reported consortium has allegedly reached out to France’s Tikehau Capital SCA, which has denied involvement in the deal, as well as to US-based Blackstone (NYSE:BX ). 

However, the outcome of these discussions remains unclear, according to Corriere della Sera.

The speculation surrounding the potential stake sale, combined with the strategic significance of Telecom Italia within the broader European telecom landscape, has driven investor confidence, leading to a surge in the company’s stock price. 

However, the deal remains contingent on several factors, including Vivendi's agreement to the sale and the necessary regulatory approvals from the Italian government.

This marks the latest chapter in the ongoing saga surrounding Telecom Italia, a company that has been at the center of strategic and financial maneuvering in recent years, as it continues to navigate the complexities of the European telecommunications market.

Source: Investing.com