Remote duel between Vincent Bolloré and Xavier Niel in Italy

Telecom Italia is holding a crucial board meeting this Friday. Its shareholder Vivendi refuses to sell its shares to the KKR fund. This takeover offer is viewed favorably by the owner of Free, also present in Italy.

Two French billionaires battle in Italy. Vincent Bolloré and Xavier Niel engage in a showdown around the future of Telecom Italia. The telecom operator is meeting its board of directors on Friday to discuss the poor results for the third quarter. "The future of the boss is at stake" recognizes a person close to the file. It will also be a question of the takeover offer of the American fund KKR made last Sunday.

Its largest shareholder Vivendi (24%) has so far refused this proposal of more than 10 billion euros. The group controlled by Vincent Bolloré "has no reason to sell" sweeps away a close friend of the businessman who believes that the KKR offensive is led by the boss of Telecom Italia to save his job.

Xavier Niel is trying to consolidate in Italy

But opposite, it's also Xavier Niel who could take advantage of KKR's offensive. Free has been present in Italy in the mobile sector for more than three years. Its owner is also a director of KKR even if he does not participate in the takeover offer on Telecom Italia. But Xavier Niel would have every interest in buying out his Italian rival to dislodge Vincent Bolloré. “If KKR buys Telecom Italia, they will resell in five years and will be ready to consolidate the sector in Italy” deciphers a close friend of the boss of Free.

The Italian market is very fragmented, even more than in France, with five mobile operators: Vodafone, Telecom Italia, Windtre, Free-Iliad and Fastweb. Xavier Niel applies exactly the same strategy there as in France: after cutting prices and taking 12% market share, he dreams of growing by marrying "Iliad Italia" to a competitor. "It would be easier for him to make an operation with a fund like KKR when Vincent Bolloré does not want to move" adds this source. His relatives lend him the ambition to sell Iliad Italia to Telecom Italia in exchange for an increase in its capital.

Second showdown between the two billionaires

Distance duel between Vincent Bolloré and Xavier Niel in Italy

Vincent Bolloré is at an impasse in Italy. Vivendi does not control Telecom Italia and has bad relations with its boss. "He continues to have a bad image after his raids on Telecom Italia and Mediaset" assures an Italian leader. Silvio Berlusconi, still influential in the boot, did not digest Vincent Bolloré's offensive. Even if for two years, Vivendi has appeased its conflicts. The group signed two armistices: with the Berlusconi family and the activist fund Elliott which had attacked Telecom Italia. For his part, Xavier Niel enjoys a good image as a telecoms industrialist thanks to the lower prices he imposed on the Italian market.

Xavier Niel and Vincent Bolloré had already clashed for control of Telecom Italia in 2015. At the time, Vivendi had become its largest shareholder in a few weeks, but the Italian government did not appreciate the "raid" of Vincent Bollore. Xavier Niel had then invested in Telecom Italia by playing, with Prime Minister Matteo Renzi, the alternative of "the telecoms industrialist against the Breton financier" sums up a source. Vincent Bolloré had not given in and Xavier Niel had to give up, with a loss of around 200 million euros.

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