Telecom Italia (TIM) (TLIT.MI) said on Friday its top investor Vivendi (VIV.PA) had filed a complaint at a Milan court to challenge the 19-billion-euro ($21 billion) sale of the former phone monopoly's domestic fixed-line network to KKR (KKR.N).
In its complaint, Vivendi asked for the court to annul the decision by TIM's board to sell the network adding the filing did not request the immediate suspension of the deal under a fast-track procedure or any precautionary measures, TIM said.
Shares in TIM rose as much as 6.8% after Reuters reported Vivendi was not seeking an immediate suspension of the deal, which TIM wants to finalise by next summer, before paring gains to close 2.36% higher.
Backed by the Italian government, the sale was branded "unlawful" by Vivendi, which owns a 24% stake in TIM and had been demanding a shareholder vote on the deal. TIM, for its part, has said the board acted within its rights.
In a statement, TIM said it will continue pressing ahead with its plans to finalise the deal without delay.
A first hearing on the case might be held in April, a source briefed on the matter said.
Vivendi, which first invested in TIM in 2015 and has been repeatedly forced to write down the value of its holding, declined to comment on Friday.
The Paris-listed company has been seeking a higher price for the asset, and has questioned the sustainability of the business left behind.
It faces a loss of about 75% on its initial 4 billion euro investment in TIM, which it now considers a financial investment - and no longer a strategic holding.
($1 = 0.9124 euros)
