- France's Vivendi (PA:VIV) (VIVHY -0.5%) is filing a formal notice with Italy's government saying that it exercises "management and coordination" over Telecom Italia (MI:TLIT) (TI -1.2%), but doesn't control the telecom, contrary to a regulator's ruling that it does have control.
- Regulator Consob has ruled that Vivendi, TI's biggest shareholder with 24%, has de facto control of the company.
- Control is a key legal distinction for Italy, whose government can begin exercising special "golden" powers in such an instance.
- Italy would then impose conditions or even veto decisions that it considers a threat to national interests.
- Meanwhile, TI is looking at several options for its Sparkle unit, another political football. Rome would like to keep Sparkle in Italian hands since its submarine cable network transmits trans-Atlantic information.
- Sparkle could be sold or become a separate entity inside of TI that would remain under Italian leadership.
- Now read: Crexendo (CXDO) Presents At Rodman & Renshaw 19th Annual Global Investment Conference - Slideshow
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