MILAN May 8 Shares in Telecom Italia
dropped more than 3 percent on Wednesday on the back of concerns
the board will likely put off a decision on whether to open
formal merger talks with Hutchison Whampoa.
Key shareholders are divided on the issue and a panel of
directors set up last month will not be able to recommend
seeking a tie-up when the board meets on Wednesday to approve
first-quarter results, sources with knowledge of the situation
said on Tuesday.
"It is unlikely that from today's board binding decisions
on the dossiers emerge," ICPBI Equity Research said in a note.
The stock fell 2 percent to 0.63 euros by 0729 GMT.
(Reporting by Antonella Ciancio, editing by Silvia Aloisi)