French telecom company Vivendi has agreed to sell 15 percent of its stake in Italian telco Poste Italiane, for €684 million ($740m).

The sale is at a reduced price. Vivendi will no longer be the largest shareholder in the Italian carrier.

Once the transaction is finalized, Vivendi will own a minority share of just 2.51 percent in the telco.

Poste Italiane will expand its stake to 24.8 percent of ordinary shares and 17.8 percent of share capital to become the new top shareholder.

The company already owns a 9.8 percent stake in TIM, which it acquired from state lender Cassa Depositi e Prestiti (CDP).

Vivendi announced last week that it had cut its stake down from 23.8 percent to 18.37 percent as part of its strategic decision to divest from TIM.

As part of the agreement, Vivendi said it has agreed to end its legal challenge against TIM over the carrier selling its landline grid network to investment firm KKR for €22 billion ($23.85bn).

Vivendi’s push to cut its stake in TIM stems from its opposition to TIM’s sale of its landline grid to KKR.

It voiced its concerns after TIM approved the sale without holding a conditional vote with shareholders.

This led Vivendi to call the sale “unlawful,” and it launched a legal challenge. But the Italian courts rejected Vivendi’s appeal to cancel the deal.

TIM instigated the sale to reduce its debt, which it expects to cut by €14 billion ($14.3bn).

The company has also been looking to shift its subsea unit, Sparkle. Last month, TIM’s board of directors approved an offer worth €700 million ($758m) from Italy’s Ministry of Economy and Finance (MEF) and Retelit, a company controlled by the Asterion fund, for its Sparkle unit.