Telecom Italia urged its shareholders to send Olivetti's chief executive packing on Wednesday as the battle to save the telco from Olivetti's clutches intensifies.
In a letter to shareholders, Telecom Italia said Olivetti's $58 billion proposed takeover bid does not "come close to the fair value of the company". Olivetti is offering 11.50 euros per share.
Telecom Italia warned that the company would report "significant losses for at least the next three years" because of the merger. The telco would partly be merged with Olivetti's small IT arm, Tecnost, which has a total net debt of 58 billion euros,compared with Telecom Italia's debt of 43 billion euros.
The telco also said that 40 per cent of Olivetti?s offer was on paper, which may trade below the tendered price, making shareholders into minority stock owners.
The letter concluded: "Mr [Roberto] Colaninno [Olivetti?s chief executive] says he may go away if 30 per cent of Telecom Italia's shareholders vote in favour of the industrial plan on April 10. Make sure you are one of them."
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