Elliott Raises Stake in Telecom Italia to 8.8% -- Update
April 09 2018 - 11:07AM
Dow Jones News
By Marc Navarro Gonzalez and Alberto Delclaux
Activist investor Elliott Management Corp. has raised its stake
in Telecom Italia SpA (TIT.MI) to 8.8%, according to a regulatory
filing on Monday, as it released a series of proposals to deliver
additional value to shareholders.
Elliott said in a presentation to investors that the separation
of Telecom Italia's fixed-access network into a separate legal
entity, or NetCo--which would be 100% controlled by the Italian
operator--could draw new investors and unlock as much as 7 billion
euros ($8.59 billion) in "hidden value."
Through the creation of the NetCo and the disposal of subsea
cable unit Sparkle, Telecom Italia would be positioned to
reintroduce a dividend, Elliott said. It added that the company
would be able to distribute EUR1.2 billion of dividend in 2019.
The activist fund said that an independent board could deliver
actions which may double the stock price over the next two
years.
The news comes as Elliott pressures Vivendi SA (VIV.FR), holder
of a 24% Telecom Italia stake, for changes at the telecoms company.
The power struggle between the two recently triggered the
resignation of eight Vivendi-affiliated board members, forcing a
complete reshuffle of the board.
Telecom Italia's board of directors is scheduled to meet Monday
to discuss potential action after company auditors requested adding
an Elliott-proposed motion to replace six Vivendi-affiliated board
members to the agenda of its shareholders meeting on April 24.
Read more about the Telecom Italia tug-of-war at:
https://on.wsj.com/2GKAIUX
Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com and
Alberto Delclaux at alberto.delclaux@dowjones.com
-0-
(END) Dow Jones Newswires
April 09, 2018 10:52 ET (14:52 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Telecom Italia (NYSE:TI)
Historical Stock Chart
From Sep 2024 to Oct 2024
Telecom Italia (NYSE:TI)
Historical Stock Chart
From Oct 2023 to Oct 2024