The plan for Telecom Italia (TIM) to
sell its fixed-lined grid NetCo to American fund KKR will not be
knocked off track by the opposition of its biggest stakeholder,
French media group Vivendi, Economy Minister Giancarlo Giorgetti
said on Monday.
On Sunday Telecom Italia's broad approved the decision to accept
KKR's bid in a deal whose value could reach 22 billion euros.
Vivendi has said NetCo is worth much more and has vowed to "use
all legal means available" to reverse TIM's "illegal" decision.
Under the deal, the Italian State would take a stake of up to
20% of the grid, which is considered strategic infrastructure.
'Vivendi has its rights and will exercise them,' Giorgetti said.
"The economy ministry participated in the bid. We made an offer
and the board of directors accepted it.
"Obviously the shareholders have their rights, they will assert
them in the appropriate fora.
"This, however, is the project".
TIM's share price rose at the opening of trading on Monday but
then went on to shed 2%, amid the threat of Vivendi taking legal
action against the deal.
TIM wants to sell some assets to bring down its debts, which add
up to around 26 billion euros.
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