Telecom Italia board okays TIM merger

24 Jan 2005

The board of Telecom Italia has agreed terms for a planned EUR21 billion buyout of shares in its majority owned mobile arm Telecom Italia Mobile (TIM). Telecom Italia already owns 56.1% of the cellco and is targeting shares amounting to around 18% of the company. If completed, the transaction it will lift the incumbent’s shareholding in the mobile operator, seen by many as a cash cow, to 74% and give the company more wiggle room as it looks to contend with the high level of debt its has struggled to cope with since 1999.