Main shareholder to write down Telecom Italia stake

24 Jun 2011

According to Reuters, Telecom Italia’s main shareholders are seeking to write down the shares they own in the Italian telecoms group through the investment vehicle Telco. With this in mind, Telco’s Italian shareholders have given investment bank Lazard an informal mandate to value the 22.4% stake. Telefonica of Spain currently owns 46% of Telco, whilst insurer Generali owns a 30.6% stake. Italian banks Intesa Sanpaolo and Mediobanca both hold 11.6% stakes. An anonymous source told Reuters: ‘I guess we’re going in that direction’. A second source claims that Telco intends to hold a board meeting on 6 July to discuss the matter.

As at 31 December 2010 holding company Telco owned a 22.40% stake in Telecom Italia, with Italian institutional investors accounting for 11.47%, foreign institutional investors 38.37%, Italian companies 1.03%, foreign companies 4.12%, TI Group holding 1.21% and the remaining 22.40% distributed among other investors. The Telco partners paid Pirelli EUR4.16 billion (USD5.95 billion) in 2007 for the indirect interest in TI and went on to combine this stake with their existing investments.

Italy, Telecom Italia (TIM)