Vivendi's appeal against the sale of the network triggers the title Telecom Italy on the stock exchange. It seems like a contradiction but it is not because the eyes of investors have focused on a single, but fundamental, detail: the appeal presented by the French giant does not provide for a suspension, therefore the legal battle will not prevent the operation from moving forward according to the stages already established, including the extension of the terms until the end of January 2024 of the negotiation with the KKR fund for the sale of Sparkle.
Tim, Vivendi's announced appeal arrives
The filing of the appeal was widely expected. On the morning of Friday 15 December, the French shareholder, Tim's largest shareholder with a 23,75% stake, filed the summons with the Court of Milan which seeks to oppose the transfer of the network to Kkr.
In the evening, through a note, Tim announced that he had received notification today of a ordinary summons by Vivendi, in which the legitimacy of the board resolution taken by the company on 5 November, which approved the sale of the so-called NetCo, was contested".
The lawsuit asks the annulment of the resolution, but not the suspension of the operation. The appeal, in fact, does not have the urgency profiles pursuant to article 700, but it's all about merit. Vivendi contested the method of approval of the operation, which concerned only the board of directors without passing through a shareholders' meeting, and the failure to activate the procedure envisaged for transactions with related parties.
“It should be noted – Tim underlines – that Vivendi has not made any precautionary request, nor did it ask to urgently inhibit the execution of the resolution and the consequent negotiating acts. The activities envisaged by the agreements with KKR aimed at closing the operation will therefore continue, as expected, without delays or interruptions".
In the note, the company led by Pietro Labriola also specifies that: "As for the content of Vivendi's initiative (announced months ago to the market with effects on the performance of stock market prices), it should be noted that it is based on arguments that the Company has already analyzed in detail at the time of approval of the operation and that a prodromal comparison, also sought several times by the Company, would perhaps have helped in a better understanding of the matter and its legitimacy and avoided prolonging over time a climate of uncertainty and instability to the detriment of shareholders and other Tim stakeholders."
The reaction of Telecom Italia shares on the stock exchange
The fact that the appeal does not contain a request for suspension represents a fundamental detail for investors on Piazza Affari, convinced at this point that the sale will go through. In fact, without emergency profiles pursuant to article 700, the operation can go ahead while the legal battle takes longer.
As news about the appeal multiplied, in fact the Telecom Italia stock has begun to attract purchases, earning up to 6% of its value and reaching 28 cents per share. Closing the shares increased by 2,36% to 0,269 euros, producing one of the best performances of the Ftse Mib (+0,05%).
(Last update: 18.11pm on Friday 15 December).
