Vivendi SE (ENXTPA:VIV) is considering options for its ?1.3 billion ($1.4 billion) stake in former phone monopoly Telecom Italia S.p.A. (BIT:TIT) as billionaire Vincent Bolloré explores a reorganization of the French conglomerate, people familiar with the matter said. The French company has spoken with advisers as it evaluates potential options including a sale of the 24% holding, according to the people, who asked not to be identified because the matter is confidential. Representatives for Vivendi and Telecom Italia declined to comment.

A sale could be part of a broader overhaul at Vivendi, which said on December 13, 2023 it?s considering splitting into three parts ? pay-TV business Canal+; advertising and communications branch Havas; and a holding company with listed and unlisted stakes in culture, media and entertainment. The announcement made no mention of Telecom Italia.

For the Italian company, an exit by Vivendi could smooth the way for the ?22 billion sale of its fixed-line phone network to KKR & Co. Inc. (NYSE:KKR). Vivendi, Telecom Italia?s biggest shareholder, wants to block the deal, and is finalizing legal action to halt it as soon as this week.

Vivendi is set to contend that the deal doesn?t comply with Italian corporate law. Telecom Italia shares rose 5.6% to 0.263 cents at 4:46 p.m. in Milan, while Vivendi climbed 11% to ?9.93, bolstered by news of the potential broader breakup.