Shareholders move to block TI/Olivetti merger

15 May 2003

Bermuda-based hedge fund Liverpool Ltd Partnership has sought an injunction from an Italian court to stop the planned merger between Telecom Italia and Olivetti. The hedge fund claims that two of Olivetti’s key shareholders acted in concert last year to control over 30% of Olivetti, a level above which Italian law requires a full takeover offer. The Securities and Exchange Commission has also been asked to investigate other possible improprieties regarding the merger.