By Anne Morris

Telecom Italia’s largest shareholder Vivendi reportedly delivered a major boost to transformation plans unveiled by CEO Pietro Labriola by throwing its support behind the recently-appointed executive.

On its 2021 earnings call, Vivendi chairman and CEO Arnaud de Puyfontaine praised Labriola’s plan to separate the Italian operator into two units, tipping the move to boost Telecom Italia’s financial position, Seeking Alpha reported.

Vivendi’s backing is significant given the French outfit booked a €728 million(US$800.25million) write down on its investment in the operator in 2021.

De Puyfontaine reportedly stated the Italian operator’s new leadership team positioned it to “deliver on its promises” and restore its share price to a level “much higher” than it is today.

Vivendi holds a a 24 per cent stake in Telecom Italia, which has recently faced a stock market backlash to Labriola’s separation plan.

Reuters reported de Puyfontaine later told journalists a takeover offer made by US investor KKR undervalued Telecom Italia.

Telecom Italia is yet to respond to KKR’s original offer, but is expected to do so in the coming days.

KKR reportedly remains keen on a deal, although at a lower price of around €0.40 per share compared with the €0.505 bid in November 2021.