Vivendi has denied that it is in talks with potential partners about mounting a bid for Telecom Italia, saying that its investment in the Italian operator has not been made in concert with anyone else and ruling out the possibility of making an offer for the company.
Arnaud de Puyfontaine, chief executive of Vivendi, Telecom Italia’s biggest shareholder, said: “Since we increased our stake, there has been a lot of speculation of Vivendi playing on behalf of Orange . . . but it has never been on the agenda. There has not been any discussion between Vivendi and Orange.”
French media had reported that the Paris-based group had talked with other investors, including Orange and Egyptian telecoms billionaire Naguib Sawiris over Telecom Italia’s future.
The reports came days after Xavier Niel, the French telecoms tycoon, also entered the fray via options that could give him a stake of more than 15 per cent in Italy’s biggest mobile operator.
“The situation both for Niel and for Naguib Sawiris is the same answer: there has not been a discussion with them about Telecom Italia,” said Mr de Puyfontaine.
He did not rule out the possibility that Vivendi, which has spent more than €3bn in recent months ramping up its stake in Telecom Italia to more than 20 per cent, could increase its holding further to hit the 24.9 per cent threshold before an investor must make a public offer for the whole company.
“It would not be wise to dismiss any options,” he said. “Never say never.”
But he added: “It is not at all on the agenda. It would not be consistent with our position not to become owners of telecoms operations.”
The news comes as pressure mounts on Matteo Renzi, Italian prime minister, to comment on the arrival of the French investors in a company that has long been considered a strategic asset.
Maurizio Gasparri, Italian senator for the centre-right opposition, said: “It is useless to minimise the Telecom situation. The new foreign shareholders will have a decisive role and for this reason the situation needs to be brought before parliament.”
Italy’s state financing agency Cassa Depositi e Prestiti was also forced on Monday to issue a denial that it plans to meet Mr Niel or Vincent Bolloré, Vivendi’s chairman.
CDP, a €410bn state-agency backed by postal savings, said it had “no meetings planned with Xavier Niel or his representatives or Vivendi”.
The denial comes against a backdrop of talks between Metroweb, a CDP-owned network provider, and Telecom Italia about jointly investing in Italy’s underfunded ultrafast broadband network. Mr Renzi said in May that improving Italy’s broadband network was of “strategic” importance.
Analysts and some investors have privately questioned Vivendi’s strategy of seeing Telecom Italia as a channel for distributing content from Canal Plus, its pay-television business, and the music catalogue of its Universal Music Group.
But Mr de Puyfontaine was adamant that the operator was part of a long-term distribution strategy. “There are common initiatives between Telecom Italia and Vivendi around bringing content to customers. Having this stake is not getting back in the telecoms business,” he insisted.
Commenting on Mr Niel’s recent investment in options that if exercised would turn him into Telecom Italia’s second-biggest shareholder, Mr de Puyfontaine said: “From my perspective, it does not change our vision for the potential of Telecom Italia.”
He added: “Do we see it as a hindrance? Not at all. It just confirms that we were right about building a position in TI.”