Spanish telecom giant Telefonica said Wednesday it had sold its 8.2 percent stake in Telecom Italia to French media group Vivendi, in a deal estimated to be worth more than a billion euros.
"Telefonica has transferred... 1.11 billion ordinary shares in Telecom Italia... to Vivendi," the Spanish firm said in a statement to the Madrid stock exchange.
"Telefonica hereby announces the divestment of its entire shareholding in Telecom Italia."
In return, Vivendi transferred back to Telefonica a 4.5 percent stake that the French company had earlier acquired in Telefonica's Brazilian subsidiary.
The deal was one of a series of transactions in a complex agreement signed on September 19 for Telefonica to take control of Brazilian telecom firm GVT from Vivendi.
Telefonica said the deal overall would yield it a pre-tax gain of 380 million euros ($426 million).
The deal boosted Vivendi's stake in Italy's biggest telecom provider to 14.9 percent, Bloomberg reported. It said Telefonica sold the shares for about 1.03 billion euros.
Telecom Italia shares closed 1.09 percent lower at 1.18 euros in trading in Milan on Wednesday.