MILAN, Sept 24 (Reuters) - Telefonica has agreed to raise its stake in Telco, the holding company that controls Telecom Italia, in a two-phase deal that will give the Spanish group an initial 66 percent in Telco with no changes in voting rights.
In the first phase, Telefonica will raise its stake from the current 46 percent by subscribing to a capital increase in Telco of 324 million euros ($437 million), valuing the underlying Telecom Italia shares at 1.09 euros each, said the Italian shareholders in Telco in a joint statement.
The Italian partners in Telco are Generali, Intesa Sanpaolo, Mediobanca.
In a second phase, Telefonica has agreed to raise its stake in Telco to 70 percent by subscribing to another Telco capital increase worth 117 million euros without increasing its voting rights.
Telefonica will have the right to increase its voting rights in Telco to up to 64.9 percent starting from Jan 2014, conditional on regulatory aprovals including in Brazil and Argentina.
As of the same date, Telefonica will have the right to buy all the shares in Telco, it said.