Telecom Italia shareholder calls for merger via incorporation of GVT
Marco Fossati, the owner of Findim, the holding that controls 5% of Telecom Italia (TI), has called for TI to carry out merger through an incorporation with GVT, the Brazilian broadband operator.
In an interview with Italian-language daily Milano Finanza, Fossati said that such a merger would create synergies and add value as GVT is one of the few operators to offer broadband via cable rather than ADSL.
Fossati said that the operation would include both cash and share and also involve a small capital increase to ensure that TI continued to hold over 50% of Tim Brasil, its mobile phone subsidiary in Brazil.
Fossati added that he was not against a sale of Tim Brasil, as it would reduce debt and allow for important investments in Italy. However, Fossati added that such a sale could only be justified if an Italian project was drawn up which would create value for TI.
Fossati also welcomed the possible dissolution of Telco, the shareholder vehicle that controls TI with a 22.4% stake, as it would make TI more open to a takeover. Telco, which is owned by the Spanish telco Telefonica, Generali, Mediobanca and Intesa Sanpaolo, could be dissolved in June, the article noted.
A report in La Repubblica cited financial sources who said that TI's CEO, Marco Patuano, and Tim Brasil's CEO, Rodrigo Abreu, had met with senior GVT management to discuss a merger with between Tim Brasil and GVT.
The report noted that GVT is controlled by the French telco Vivendi.
Source Milano Finanza daily edition, La Repubblica