** Shares of Italy’s Telecom Italia TLIT.MI are down 3.7 percent, after the board on Sunday approved the sale of its landline network to U.S. private equity firm KKR KKR .N for 19 billion euros ($20.4 billion)
**It’s a good thing that the network case has (apparently) been settled, but investors, especially foreign investors, are worried about the more than likely litigation announced by Vivendi,” said a trader based in Milan
The stock, he adds, is being sold because investors fear getting caught up in the process, preferring to focus on other stocks in the telecommunications sector
**Stocks are on track for their worst day since October 2023, when they closed down 4.1%
** Sale price of 18.8 billion euros, including debt, could rise to 22 billion euros if certain conditions are met, TIM said
** The board did not put the decision to a shareholder vote, responding to demands from Vivendi, Telecom’s main investor, which said on Sunday that it considered the board’s decision “illegal ”
** Vivendi added that it would use “all legal means at its disposal to contest” the decision.
($1 = 0.9315 euros)