Telecom Italia shares potential Vivendi stake sale by Investing.com

Investingcom — Shares of Telecom Italia (ETR:) rose on Monday following a Corriere della Sera report that a consortium of investors is considering buying Vivendi’s (OTC:) stake in the Italian telecom giant.

At 6:52 am (1052 GMT), Telecom Italia was trading 2.8 percent higher.

The consortium includes Andrea Pezzi, a former Vivendi consultant in Italy, and Claudio Costamagna, former chairman of state lender Cassa Depositi e Prestiti. Although both Pezzi and Costamagna denied involvement when contacted by Corriere della Sera.

The potential sale, said to be at an “embryonic” stage, would require Italian government approval. With its “golden power” prerogative, the government has the authority to control takeovers of companies deemed to play a strategic role in the nation’s economy, such as those in the telecommunications sector.

Although the government has yet to comment on the matter, the possibility of such a high-profile transaction has heightened market anticipation.

In addition, the reported consortium is said to have reached out to France’s Tikehau Capital SCA, which has denied involvement in the deal, as well as US-based Blackstone (NYSE: ).

However, the outcome of these talks remains unclear, according to Corriere della Sera.

Speculation about the potential stake sale, combined with Telecom Italia’s strategic importance in the wider European telecommunications landscape, boosted investor confidence, leading to a rise in the company’s share price.

However, the deal remains contingent on several factors, including Vivendi’s agreement to the sale and necessary regulatory approvals from the Italian government.

It marks the latest chapter in the ongoing saga surrounding Telecom Italia, a company that has been at the center of strategic and financial maneuvering in recent years as it continues to navigate the complexities of the European telecommunications market.