Telecom Italia SpA’s board of directors delayed action on the multibillion-euro sale of its network after a key investor was unable to attend their meeting, according to people familiar with the matter.
(Bloomberg) — Telecom Italia SpA’s board of directors delayed action on the multibillion-euro sale of its network after a key investor was unable to attend their meeting, according to people familiar with the matter.
The board postponed action Friday because representatives of French media conglomerate Vivendi SE, the company’s largest shareholder, couldn’t attend, said the people, who asked not to be identified because the deliberations aren’t public.
A new meeting could be scheduled as soon as next week, the people added.
The board is weighing whether to extend the original, Oct. 31 deadline for a bid. Representatives for Telecom Italia.
People close to Vivendi, however, said the French company was surprised and disappointed that Telecom Italia chose to convene its board knowing that directors Arnaud de Puyfontaine and Frank Cadoret coudn’t attend due to previous important commitments.
Read more: Italy, Macquarie Seek Delay for Bid on Telecom Italia Grid
The sale of Telecom Italia’s network to a group of investors led by state lender Cassa Depositi and infrastructure fund Macquarie Group Ltd.
is the main step to start creating a single, ultra-broadband network in Italy.
Earlier this year, Telecom Italia and Cassa Depositi, along with Macquarie, signed a memorandum of understanding aimed at merging the phone company’s grid with smaller, state-backed rival Open Fiber.
But the network’s value remains a sticking point, with Telecom Italia advisers initially assessing it at about 20 billion euros ($19.5 billion), people familiar with the matter said earlier this year.
Vivendi valued it at about 31 billion euros.
(Updates with person close to Vivendi in fourth paragraph.)
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