Telecom Italia?s (TI) shareholders are expected to narrowly approve a new industrial plan for the company on Saturday in a move that will effectively block the $65 million proposed takeover by Olivetti.
Franco Bernabe, TI?s chief executive, is proposing the scheme in an attempt to make the firm to expensive for Olivetti to buy. It involves converting non voting shares into ordinary stock, a buyback of 10 per cent of TI?s shares, and a $24 billion purchase of the 40 per cent stake in Telecom Italia Mobile that TI does not already own.
Bernabe needs the approval of 30 per cent of shareholders for the measures to be passed, but said he expected 35 per cent of them to show up - although not all may back the plan.
But Olivetti has also said it would be happy to acquire as little as 35 per cent of TI?s 5.26 billion voting shares if that is all its tender offer can garner.
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