The largest shareholder of Telecom Italia, Vivendi, distanced away from a possible sale of its stake to private equity investor KKR. Vivendi insists to remain a long-term investor and is determined to achieve success.

The French group also explained KKR’s indicative offer of €0.505 per share does not adequately reflect the operator’s value. Vivendi spent an average of €1.07 on its 24% stake in Telecom Italia, so it would be making a loss based on the first bid.

KKR has stated it would be willing to accept a minimum threshold of 51%, meaning it does not necessarily need Vivendi’s support. However, a deal would require backing from two-thirds of the board, which KKR would struggle to achieve without Vivendi on deck.

The deal also needs approval from the Italian government, which holds special veto powers on a takeover. Industry Minister Giancarlo Giorgetti said the government will discuss a takeover when KKR makes a binding proposal.