- Italy has elected to use its "golden power" over Telecom Italia (MI:TLIT) (TI -1.7%) and its decision-making, a significant result of a longstanding debate over the growing power over the company by French media giant Vivendi (PA:VIV) (VIVHY -0.7%).
- Vivendi had no comment in response.
- As Vivendi has built its stake (now at 24%) and tightened its grip on Telecom Italia, the Italian government has considered getting involved and regarding Telecom Italia as a national strategic asset. That debate centered mostly on the definition of whether Vivendi had "control" of the incumbent telecom.
- Rome has never exercised the power, which allows for it to veto actions including asset sales, mergers and any change of control. Prime Minister Paolo Gentiloni didn't offer details along with the decree.
- Italian regulator Consob ruled that Vivendi had control at TI, while Vivendi appealed that ruling saying it only exercised "management and coordination."
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Original article