The association of small shareholders in Telecom Italia, Asati, has called upon the company’s board of directors to instigate a capital increase of at least €4bn, set up a new fund to hold 1.6 billion shares and adopt a dual board structure.
In a…
The association of small shareholders in Telecom Italia, Asati, has called upon the company’s board of directors to instigate a capital increase of at least €4bn, set up a new fund to hold 1.6 billion shares and adopt a dual board structure.
In a letter to Telecom Italia CEO Franco Bernabe, Asati said that, in light of the serious economic and financial situation in which the telco now finds itself, the association “strongly recommends” the board place the aforementioned items and others on the agenda of its next AGM.
The association, headed by Franco Lombardi, has previously criticised Telecom Italia’s plans to raise up to €3bn (US$4bn) in hybrid securities. Describing the plans, which were postponed after the controversial late-February general elections, as “very costly”, the group said a share issue was a better way of funding growth.
In its letter today, Asati recommends the capital increase of at least €4bn be offered to potentially-interested parties, such as state lender CDP, at a discount of up to 40% of their market value.
The group also asks that company statutes be amended to adopt a dual-board model with both management and supervisory boards. It suggests the former have nine to 11 members, two of whom should represent small shareholders, and the latter seven members, three to represent small shareholders and trade unions.
In addition, Asati says a vehicle-type fund should be established to hold 1.6 billion shares “as approved in the assembly of April 2009”.
The group’s other recommendations included developing a new three-year plan for 2013-2015, dismissing the one presented in February as unconvincing.
In a final request, Asati asked that the AGM be held on 17 April in Rome.
Telecom Italia was not immediately available for comment.
The telco is working to cut debt that, according to the company’s preliminary 2012 results, stood at €28.27bn at the end of the year.
Earlier this week, the telco’s media unit announced it had agreed to sell flagship TV channel La7 to local media firm Cairo Communications for a consideration of €1m.
Investor group Telco is Telecom Italia’s largest shareholder, with a 22.39% stake at the end of September 2012. Small, non-institutional and non-corporate Italian shareholders owned 17.97% of shares at the end of Q3 2012.
