JP Morgan 5.1% of Telecom. Vivendi moves on the board of directors. IMI: a case? – Milano Finanza

You start dancing on Telecom Italian waiting for the board of directors of 15 December. The Italian group has received yesterday a note of Vivendi with which the French call for an integration of the agenda. Meanwhile, we learn that Consob has changed the corporate structure of the group. On 6 November, in the aftermath of the savings shares were converted into ordinary shares, JP Morgan rose to 5.133% of Telecom Italy becoming the second major partner.

The American group holds share, writes Consob, in indirect ownership, of which 1.426% without voting rights. It is perhaps the figure for savings shares, which is not eligible to vote. Today, therefore, the corporate structure is as follows: Vivendi to 20.031%, JP Morgan at 5,133%, Norges Bank to 2.775% and the People’s Bank of China to 2.081%.

For now Xavier Niel, group head of telecommunications French Iliad, has no direct action in the group, but a complex package of products (15% of the total, and not everything can be converted into shares) with a maturity between mid-2016 and 2017. And ‘has been calculated that, following the conversion of savings, the participation of Vivendi will drop from 20.03% to 13.8%, the potential of Xavier Niel from 10% to 6.9%.

the shift from savings to ordinary must be approved by the extraordinary shareholders scheduled for December 15th (ordinary shares) and December 17 (savings).

In his note yesterday evening, Vivendi has asked to bring 13 to 17 the number of members of the board of directors and to appoint Arnaud de Puyfontaine Roy (CEO of Vivendi ), Stephane Roussel (chief operating officer), Hervé Philippe (chief financial officer) and Herzog Felicité new directors of the company .

At the beginning of last July, JPMorgan had announced to have in hand the 7% stake in the telephone company (later dropped). The fee was linked to the residual interest of Telefonica in Telecom, the Spanish company had put in the service of a convertible bond (July 24, 2014 issue) and on which he built a hedging transaction with the investment bank . The contract Total return equity swap with JP Morgan expects, as of July 19, 2017, the option to purchase ordinary shares of Telecom in a proportion of between 5.395% and 6.474%.

That tied to bond It represents the residual amount of belly Telefonica after the turn of 8.3% of Telecom to Vivendi last June following the dissolution of Telco, the holding company which was owned 22% stake in the group led by Joseph Recchi.

Today Banca Imi recalls in his note the operation between Telefonica and JP Morgan said that the request of Vivendi to have four representatives on the board of Telecom Italy can be supported by investment bank American. And if in the meantime Niel not buy shares of the telephone group, will attend the next meeting of shareholders.

Analysts Banca Imi write that, if the new items on the agenda will be approved on December 15 Vivendi will increase significantly to its influence on the board. And that, for the experts, could mean an acceleration in the consolidation / output in Brazil and the start of a process of rationalization in Southern Europe. Facts that increase the speculative appeal of Telecom Italy .

Along the same lines also Equita. Especially if Vivendi “will prove to be a ferryman to other shareholders in the context of European consolidation”, writes today the analyst firm (buy rating, target price EUR 1.32), the move to Vivendi ” should not diminish the appeal fundamental nor speculative. “

With the help of strategic Vivendi as major shareholder, said today Mediobanca Securities (outperform rating, target price EUR 1.51), Telecom Italy will play a role first pano in a scenario of European telecommunications medium to long term.