ROME (Reuters) - An Italian administrative court on Wednesday confirmed a 2017 ruling by market regulator Consob which said French media group Vivendi was at the time exercising “de facto control” over Telecom Italia (TIM).
The court on Wednesday dismissed appeals submitted by both Vivendi and Telecom Italia challenging Consob’s decision.
Vivendi, TIM’s top shareholder with a 24 percent stake, in 2017 controlled two-thirds of the Italian phone group’s board. Activist fund Elliott wrested board control away from Vivendi last May.
Following Consob’s decision in September 2017, TIM was fined 74.3 million euros ($83.91 million) for failing to notify the government that its main shareholder Vivendi had effective control. The fine was suspended last year pending the court’s inquiry into the issue.
Reporting by Domenico Lusi, writing by Agnieszka Flak