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Telecom Italia CEO held talks with Vivendi in Paris on Thursday

Published 08/02/2024, 20:30
Updated 09/02/2024, 11:01
© Reuters. FILE PHOTO: CEO of TIM Group Pietro Labriola speaks during a news conference at the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain February 28, 2023. REUTERS/Albert Gea/File Photo

By Elvira Pollina

MILAN (Reuters) -Telecom Italia (TIM) Chief Executive Pietro Labriola met with top representatives of the group's main investor Vivendi (EPA:VIV) in Paris on Thursday, two sources briefed on the matter said.

The French media company, which holds a 24% stake in TIM, and Labriola have been at odds over TIM's decision to sell its prized landline grid to U.S. fund KKR in a government sponsored deal worth up to 22 billion euros ($23.68 billion).

The sources described the meetings as "friendly" and "positive" but added that Vivendi's representatives reiterated their disagreement over the network deal, which the French company is challenging in courts.

The French giant, which began building its stake in TIM in 2015, told Labriola it was considering options including selling its shares, in order to cut a nearly 75% loss the French media group faces on its initial investment, the sources said.

Vivendi has repeatedly asked for a higher price for the network and questioned the sustainability of the service business left behind in the country's highly competitive telecoms sector.

© Reuters. FILE PHOTO: CEO of TIM Group Pietro Labriola speaks during a news conference at the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain February 28, 2023. REUTERS/Albert Gea/File Photo

The talks took place as Labriola, who is working on a new business plan, is seeking a second term at the helm of the former phone monopoly.

($1 = 0.9289 euros)

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