Vivendi is open to talks with Rome about state control of the TIM network

MILAN, Dec 5 (Reuters) – Telecom Italia (TIM) major shareholder Vivendi (VIV.PA) is open to discussing the possibility of the Italian government gaining control of TIM’s fixed-line network, a spokesman said of the French company on Sunday.

The statement marks a shift in attitude at the French media giant as TIM investors prepare to review a €10.8 billion ($12.2 billion) takeover plan that US fund KKR ( KKR.N) for TIM.

So far, the French group has hesitated over the possibility of Rome gaining control of TIM’s fixed network.

A spokesman for the French media group told Reuters that Vivendi is interested in any solution that “promotes the efficiency and modernity of the network while preserving the value of its investment”.

“From this perspective, the hypothesis of state control of the network, if it could lead to an institutionally driven strategic project, is certainly assessed with openness,” the spokesman added.

TIM’s fixed-line business provides Italy’s main telecommunications infrastructure and plays a key role in the broadband rollout effort that Rome plans to spend billions of euros in EU funds to improve coverage.

State investor CDP has taken a 10% stake in TIM to oversee the network and is expected to play a key role in any plans to carve out the network.

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Reporting by Elvira Pollina and Francesca Landini; writing by Francesca Landini; Edited by David Evans

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