Telefonica waives voting rights in Telecom Italia

24 March 2015 |

Telefonica has formally waived its voting rights in Telecom Italia, in order to comply with rulings made by Brazil’s telecoms regulator for its acquisition of Vivendi’s GVT.

Earlier this month the country’s watchdog Anatel approved an equity swap between Telefonica and Vivendi and gave the go-ahead for Telefonica to transfer 8.3% of its Telecom Italia voting shares to Vivendi, as well as 11.3% of its preferred shares in Telefonica Brasil.

"In compliance with the two Anatel decisions, we expressly and irrevocably waive all political rights to be held by Telefonica in TI, as well as in any companies controlled by TI, including TIM Cellular and Intelig Telecomunicacoes," Telefonica said in a statement to Spain's stock market regulato, the Comision Nacional del Mercado de Valores (CNMW).

Telefonica has around 14.8% stake in Telecom Italia after the split of the Telco consortium last year.

Last September, Telefonica signed an agreement to buy Brazilian broadband firm GVT from Vivendi for €4.66 billion in cash and an exchange of shares, including the transfer of some of its stake in Telecom Italia to GVT.