Vivendi announced becoming the largest shareholder of Telecom Italia, with 14.9% of the capital of the latter, 8.2% received from Telefonica with the sale of GVT and the balance with an acquisition in the market for a amount of one billion euros.
The general director of the group, Arnaud de Puyfontaine, told the Italian press that a new capital increase was possible, citing the “tremendous opportunities” offered by the government’s desire to develop a high network flow at very high speed. The leader also presented his group as a long term investor in the Italian operator
Our recommendation for VIVENDI:. SAVE
These statements and this up to Telecom Italia’s capital causes trouble on Vivendi stated strategy of becoming a leading provider of content and media. Indeed, what interests become telecom operator in Italy after leaving the sector in France and Brazil? Observers are circumspect. Telecom Italia’s growth forecasts are 0.8% for the period 2015-2017, and few are possible convergences with other group subsidiaries. The investment of one billion euros also questions: Vivendi has a cash mountain that should serve him to position in the markets it stated priority, and this is not the case. Acquisition opportunities in content and media seem rare. Another hypothesis sees Vincent Bolloré telecom sector concentration and wants to enjoy it: the well-known opportunity businessman strategy would be at work. Although the reasons for these movements beyond the market, investors do not seem to disturb the title serenely continuing its upward path this time. Keep, including the guaranteed annual return of nearly 8% over the next two years
Course time board. € 23.78
Target: € 26 representing a potential 9.3%
Investor profile: all age groups
Investment horizon: 12 to 24 months
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