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Telecom Italia stock spikes 6% on news of Sawiris' offer

Egyptian billionaire offers capital increase for minority stake

12 November, 14:04
Telecom Italia stock spikes 6% on news of Sawiris' offer (ANSA) - Milan, November 12 - Telecom Italia (TIT) stock shot up more than 6% on Monday on news that Egyptian billionaire and Orascom Development CEO Naguib Onsi Sawiris had offered a capital increase in exchange for a minority stake.

A note from TIT confirmed Monday morning that Sawiris was interested in buying an emission of new shares. "The initiative is described as aimed at providing the company with resources for growth projects. The document was read at the Board Meeting held last November 8th. (The board) limited itself to taking note of it, reserving for itself the opportunity to evaluate" the proposal after a series of checks, the company note said.

Unconfirmed rumors placed the value of the offer at 4-5 billion euros.

The news followed better-than-expected third-quarter results and confirmed year-end targets.

ßßß''Clearly if someone has an interest in Telecom Italia, it means the company has value. We are pleased that there should be such an interest,'' commented TIT CEO Franco Bernabe'.

On Monday, Bernabe' told journalists at a company presentation that TIT's industrial plan "is aggressive on costs, but also on development". Asked whether the industrial plan will have an impact on company employees, Bernabe' replied, "When the moment arrives, we will talk about it."