Telecom Italia approves media buyout
Telecom Italia has approved the takeover of Telecom Italia Media, its media division, which has been a publicly traded unit for over a decade.
The company announced plans to buy out TI Media in February 2015 at the presentation of its 2015-17 strategy plan.
The takeover of the media division, already 78% owned by the company, is expected to cost around €25 million. The company will offer 0.66 new ordinary shares and 0.47 new savings shares for each share of the same category in TI Media.
Telecom Italia has posted its first profit in three years. Net income was €1.35 billion in 2014, compared with a €674 million loss the year before, the company said. The group said that it plans to raise €2 billion though a bond issuance to refinance its existing debt.
In November 2014, Telecom Italia said it was exploring ways to integrate its Brazilian unit TIM Participações with its competitor Oi. However, in February 2015, the company’s CEO Marco Patuano said it has decided against a deal for Oi as "a straightforward deal is not evident".