Telecom Italia Board Proposes Share Conversion
November 05 2015 - 2:40PM
Dow Jones News
MILAN—Telecom Italia's board proposed on Thursday a share
conversion that, if approved, would lead to a dilution of its
current shareholders, the company said.
As a result of the operation, French firm Vivendi SA's stake in
the Italian firm would go down to about 13% from the current 20%.
The operation would bring to a conversion of the savings shares
into ordinary shares. As savings shares are about 30% of the total
capital, it would lead to a dilution of about 30% of all
shareholders.
Holders of savings shares don't have voting rights.
A spokesman for Vivendi declined to comment.
Telecom Italia will get more than €500 million ($545.9 million)
of cash flow coming from the conversion, a source close to the
operation said. The Italian firm said that the aim is to increase
the free float and simplify its capital structure.
Holders of savings shares would have the right to convert them
into ordinary ones, plus a payment of €0.95 for each savings share.
Savings shares which aren't voluntarily converted will be subject
to a mandatory conversion with a ratio equal to 0.87 ordinary share
for each saving share held.
If approved in the next shareholders' meeting, the conversion is
expected to become effective before the distribution of the 2015
dividends, the company said.
Write to Manuela Mesco at manuela.mesco@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 05, 2015 14:25 ET (19:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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