Telecom Italia down after Sawiris proposed $3.8 bln cap hike
Shares in Telecom Italia fall 1 per cent in early trading after Egyptian tycoon Naguib Sawiris put on the table a 3-billion-euro ($3.89 billion) capital hike.
Sawiris told Reuters that he proposed that the capital increase be open to all shareholders, not just himself, and that it should be conducted around the current market price of 0.70 euros per share.
That is likely to draw the ire of other Telecom Italia shareholders, including Spain's Telefonica and the three Italian financial institutions who together own 22.4 per cent via an unlisted holding company called Telco.
Telecom Italia shareholder Marco Fossati said on Monday that any offer for the company from Egyptian businessman Naguib Sawiris must be worth around 1.5 euros per share to be attractive.
At 08:20am shares in the telecom group are down 1.65 per cent at 0.6845 while Italian Ftse Mib of major blue-chip gains 0.64 per cent.