Telecom Italia shareholders to vote on defense strategy
Article Abstract:
Olivetti has offered $65 billion for Telecom Italia. Franco Bernabe, Telecom Italia's CEO, has several proposals to block the takeover. First, convert savings shares to voting shares, thus increasing Telecom's value by $27 billion. Olivetti said it would not pursue its offer if Telecom shareholders approve this measure. Second, a stock repurchase plan in the amount of $8.9 billion. Third, buying out minority investors in Telecom's cellular service. As a last resort, should these initiatives fail, Telecom Italia may seek help from another large outside investor.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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Telecom shareholders grumble over Olivetti bid
Article Abstract:
Olivetti's $60 billion offer for Telecom Italia has met with disappoint among large institutional shareholders in Britain and the U.S. Objections concern both the price, thought to be 30% too low, and the implications for shareholder rights in Europe. Many fund investors feel that the deal has been conducted behind closed doors with very little regard for shareholder rights. The deal is the first one in Europe to be denominated in euro currency. The management at Telecom Italia is preparing a defense against the takeover bid.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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The executive who captured Telecom Italia
Article Abstract:
Roberto Colaninno, CEO of Olivetti SpA, an Italian manufacturer of office equipment has masterminded the acquisition of Telecom SpA, the Italian telecommunications giant. Critics of the merger state that Olivetti has nothing to offer Telecom Italia but debt. However, Colannino has much success in turning Olivetti profitable by dropping its money-losing businesses and focusing instead on the booming mobile telephone industry.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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