Telecom Italia/Olivetti merger ‘reasonable’

25 Apr 2003

Accountants Deloitte & Touche have described the planned merger between Telecom Italia and Olivetti as ‘reasonable’, much to the chagrin of a number of smaller shareholders which have vehemently opposed the merger. Under the terms of the deal Telecom Italia will swap seven Olivetti shares for each of its own shares. Olivetti will also take on up to EUR9 billion of debt to satisfy a legal requirement and pay cash to those Olivetti shareholders which do not wish to become Telecom Italia shareholders. Two thirds of Telecom Italia shareholders who attend an extraordinary meeting at the end of May must approve the merger for it to go through.