FLORENCE, Italy-The board of Telecom Italia unanimously approved a voluntary savings share conversion and a buyback offer on up to 10 percent of share capital. In the event of full conversion of the savings shares, the share of the voting rights in Telecom Italia held by Olivetti will decrease from the current 54.8 percent to about 40 percent.
Olivetti will thus give up majority control of Telecom Italia. The carrier’s plan is to revive its underperforming shares and lessen its vulnerability to a takeover.
The conversion of its savings shares into ordinary shares will raise $9.41 billion for the Italian company. The funds would be used to launch a buyback of up to 10 percent of its ordinary voting shares and reduce its debt.
