Italy's Telecom Italia wins $1.2 billion court payout, eyes savings share conversion
The amount TIM is entitled to is roughly double the original licence fee, worth slightly more than 500 million euros, due to revaluation and accrued interest.
TL;DR
- Telecom Italia (TIM) has won a concession fee case at Italy's highest court.
- The ruling confirms TIM is owed just over 1 billion euros.
- This victory is expected to enable TIM to convert savings shares to ordinary stock.
- The company aims to resume dividend payments, paused in 2022.
- The dispute dates back to the liberalization of Italy's telecoms sector.
- The amount owed to TIM includes revaluation and accrued interest.
- The Italian government has already provisioned funds for litigation costs, mitigating deficit impact.
- The payout will support CEO Pietro Labriola's plan to eliminate TIM's dual-class share structure.