Shares in Telecom Italia rose
as much as 8% on Thursday before being suspended due to
volatility, after the news that French entrepreneur Xavier Neil
now owns 11% of the group.
Telecom shares rose to 1.22 euros before they were
suspended. Neil's participation in the company includes 6% in
shares and 5% in derivatives.
Separately Brazil's Globo newspaper reported that the
executive board of telecommunications company Oi voted
unanimously in favour of a proposal from LetterOne, the
investment firm controlled by Russian billionaire Mikhail
Fridman.
LetterOne has said it could pour up to $4 billion into Oi
if it merges with rival TIM, which Telecom Italia owns two
thirds of.
Oi agreed to the deal but asked Fridman to guarantee a cash
injection of $4 billion, rather than "up to" that figure. It
also asked for the time to find an agreement with TIM to be
reduced, Globo reported, adding that Oi and advisers Btg Pactual
would now starting working on a proposal for Telecom Italia for
the Oi-Tim merger.
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