Telecom Italia: shares up in Milan on stake rumours

(CercleFinance.com) - Shares in Telecom Italia rose in heavy trading today, spurred by rumours that Italy's CDP could take a stake in the group.


According to market speculation, Cassa depositi e prestiti (CDP) - which supports the Italian economy through public investment - intends to buy shares in Telecom Italia, representing up to 5% of its total share capital.

"We view CDP's entry into TIM's capital as a back up for Elliott's plan," analysts at Bryan Garnier commented this morning.

As a reminder, Vivendi currently owns 24.9% of TIM, while the activist investor and opponent Elliott holds 5.75%.

"Indeed, the Italian government and regulators have sounded very much in favour of Elliott's project, objecting Vivendi's strategy and growing influence at the company," Bryan Garnier wrote in a note.

"We believe CDP should therefore support Elliott's proposed slate for the new board to be elected at the next shareholder meeting," it added.

The Telecom Italia stock was up 3% at 0.78 euro. Over 43 million of its shares have already been traded on the Milan Stock Exchange.

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