Investing.com -- Shares of Telecom Italia (BIT:TLIT) fell over 4% on Tuesday following a Reuters report that its largest investor, Vivendi (OTC:VIVHY), has appealed a court decision rejecting its legal challenge to the sale of the telecom company’s landline network, citing two sources.
Vivendi, which holds a 24% voting stake in Telecom Italia, initially took legal action in December 2023, arguing that the board’s approval of the €22 billion deal should have been subject to a shareholder vote.
The sale, finalized in July 2024 with government backing, has fueled tensions between Telecom Italia and Vivendi, which has since indicated openness to selling its stake.
In January, a Milan court dismissed Vivendi’s case, ruling that the French media group failed to call a shareholder meeting and had not explicitly opposed the sale during proceedings, the report said.
Seeking to overturn the ruling, Vivendi filed an appeal in February, arguing that shareholders who did not vote in favor or were absent should have had the right to withdraw by selling shares back to Telecom Italia.
Telecom Italia, which maintains that the board acted within its authority, declined to comment on Reuters request, while Vivendi referred to its previous statement confirming plans to appeal.
The sale of Telecom Italia’s landline network to U.S. investment firm KKR was aimed at reducing debt and stabilizing the company’s finances. The deal also saw Italy’s government acquire a 16% stake in the network.