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Wednesday, Sep 11
Reports: Telefonica thinking of raising stake in Telecom Italia
- Reuters and the WSJ report Telefonica (TEF +0.9%) is exploring ways to raise its stake in Telecom Italia (TI +2.1%) ahead of a Sep. 28 deadline to change the ownership structure of holding group Telco, which owns 22.4% of TI. Telefonica indirectly owns 10.5% of TI via Telco.
- Reuters reports Telefonica is looking for ways to purchase the stakes of fellow Telco investors without growing its sizable debt load, which the carrier has been working to pare. Sources tell the WSJ a full-blown merger between Telefonica and TI is unlikely.
- Reuters previously reported AT&T, America Movil, and Egyptian magnate Naguib Sawiris have approached Telco about buying its TI stake.
- TI's board meets on Sep. 19; Telco will likely be among the discussed subjects. The Italian carrier has reportedly been talking with banks about raising fresh capital (perhaps as much as €), but no decision has been made.