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Italy: New rules create murky waters for Telecom Italia buyout

By  |  October 24, 2013

New laws that will set lower thresholds to require full takeover bids could complicate the impending buyout of Telecom Italia by Telefonica, say reports.

The nation announced plans for the new legislation on Thursday. Current law says a company must offer a 100 percent tender if a company buys more than a 30 percent stake in the firm. The new law, however, would require companies to launch a full takeover bid if they acquire a controlling stake in a firm.

Telefonica inked a deal to acquire Telco, which is the investment vehicle that holds a 22.4 percent stake in Telecom Italia. Telefonica currently has a 46 percent stake in Telco, but agreed last month to acquire 100 percent of that share.

Full content: Reuters

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