The 22% holding in Telecom Italia currently held by the Telco investment group will be broken up following approval from the Argentinean antitrust watchdog CNDC.
Telco group was founded in 2007 as a means of allowing Telecom Italia to deter takeover bids from AT&T and America Movil. Comprising of 4 investors – Spanish operator Telefonica along with Italian financial firms Generali, Intesa and Mediobanca – it was decided last year that the group would be dissolved.
CNDC has ruled that the breakup does not constitute a violation of competition law, clearing the way for all current investors to divest their holdings. This puts Vivendi in line to become the biggest shareholder in TI. It currently holds an 8% stake after selling its Brazilian broadband unit GVT to Telefonica.