Tuesday, 19 March 2019

Italian state lender set to increase Telecom Italia stake to 10%

By Chris Kelly, Total Telecom
Friday 15 February 19

TIM's share price rallied on news of the potential investment

Italy's state lending fund, Cassa Depositi e Prestiti, could be set to increase its stake in Telecom Italia (TIM) to up to 10 per cent, according to a report by Reuters. CDP's board cleared the way for the Italian lender to increase its stake in TIM to a maximum holding of 10 per cent within the next 12 months…

Italy's state lending fund, Cassa Depositi e Prestiti, could be set to increase its stake in Telecom Italia (TIM) to up to 10 per cent, according to a report by Reuters.

CDP's board cleared the way for the Italian lender to increase its stake in TIM to a maximum holding of 10 per cent within the next 12 months.

 TIM is currently locked in the grips of a boardroom battle between its biggest shareholder Vivendi and activist investor fund Elliott Management. Elliot currently controls the fragile balance of power in the TIM boardroom, since it succeeded in getting 5 of its members elected to directorship last year. Vivendi has subsequently called for an extraordinary shareholders' meeting to be held in March to remove the Elliott backed directors from their roles.

CDP is controlled by the Italian treasury and the Italian government's decision to up its stake in TIM is intended to calm the waters at the country's biggest telco.

TIM's shares rose 6 per cent on news of the increased investment from the Italian government. The company's share price had been in steep decline in the wake of the boardroom tussle.

TIM's share price stood at €0.58 as recently as the 27th November and had steadily fallen to €0.45 by the end of January. Today the company's stock was trading at €0.49 per share. 

Also in the news

Activist investor increases stake in TIM ahead of boardroom showdown

TIM issues profit warning as boardroom tensions flare

TIM considers move for BT's Italian assets

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry