Vivendi SA (VIV.FR) has again defended its strategy for Telecom Italia SpA (TIT.MI) in the latest chapter of its battle with Elliott Management Corp. for control of the Italian telecommunications company, as Telecom Italia's board is expected to meet Tuesday by request of Italian watchdog Consob.
Vivendi said in a statement on Tuesday that as Telecom Italia's main shareholder, it can provide stability and enable shareholders to invest and participate in any future upside.
"We are also committed to preserve Telecom Italia as an Italian company with Italian governance and representation, full transparency and accountability," Vivendi said.
In its statement, Vivendi said that before it began investing in Telecom Italia, the company was "in an extremely weak position" and had a history of underinvestment and bad management.
On Monday, Italy's Minister of Economic Development Carlo Calenda said in an interview with La Repubblica that Vivendi had been an "awful" shareholder for Telecom Italia.
Telecom Italia's board is expected to hold a meeting on Tuesday by request of Italian market regulator Consob, in order to supplement the information that will be made available ahead of its shareholder meeting on April 24, Reuters reported Tuesday citing unnamed sources.
Following the resignation of eight Telecom Italia board members affiliated with Vivendi, the Italian company called a shareholders meeting for May 4 to appoint a new board. However, Telecom Italia's auditors requested adding Elliott's proposal to replace six board members to the agenda of an earlier meeting, expected on April 24.
Read more about the imbroglio surrounding Telecom Italia at https://on.wsj.com/2JndT7q (WSJ paywall) or https://bit.ly/2IQx2gL (NewsPlus).