Italian bank Intesa Sanpaolo has joined Assicurazioni Generali and Mediobanca in requesting the demerger of Telco, the holding company that is Telecom Italia’s (TI’s) largest shareholder.
Intesa said its 7.3% stake in Telco will be converted into a…
Italian bank Intesa Sanpaolo has joined Assicurazioni Generali and Mediobanca in requesting the demerger of Telco, the holding company that is Telecom Italia’s (TI’s) largest shareholder.
Intesa said its 7.3% stake in Telco will be converted into a direct stake of about 1.6% in TI post demerger. The incumbent telco’s closing share price on 13 June implies Intesa will record a gain before taxes of about €35m, the bank said.
Mediobanca, which also has a 7.3% stake in Telco, announced plans to withdraw from the pact yesterday, while insurer Generali, which has a 19.3% stake, said last week that it intended to do so.
Telco members signed an agreement last September which would gradually see lead investor, Spain’s Telefonica, increase its influence over TI. Telefonica will own a direct stake of about 15% in the Milan-based telco once the holding company is unwound, a process which could take up to six months. As such, it will be TI’s largest single shareholder. Generali’s direct stake in TI will stand at about 4.3%.
Intesa, Mediobanca and Generali executives have said previously that they plan to exit non-core investments, such as TI, in line with their business strategies.
The unravelling of Telco, formed in 2007, is likely to reignite regulatory issues surrounding Telefonica and TI’s operations in Brazil, Vivo and TIM Brasil.
Earlier this month, Brazilian antitrust regulator Cade upheld an earlier decision to fine Telefonica R$15m (US$6.6m) and order it to reduce its influence in the local mobile market. Telefonica is preparing to ask the courts to overturn the ruling. The Spanish telco has argued that it does not vote on matters at TI that affect TIM and also removed its two representatives on the Italian telco’s board.
