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Telecom Italia main investor ready for writedown-source
February 18, 2013 / 6:16 PM / in 5 years

Telecom Italia main investor ready for writedown-source

MILAN, Feb 18 (Reuters) - Telco, the holding company which controls Telecom Italia, is gearing up to write down the value of its 22.45 percent stake in the Italian telecoms company, a source close to the situation said on Monday.

The price of the shares on Telco’s balance sheet should be marked down from 1.5 euros to 1 euro each, the source said.

Shares in Telecom Italia closed on Monday at 0.62 euros.

Telco is 46.2 percent owned by Spain’s Telefonica while Italian banks Mediobanca and Intesa Sanpaolo hold 11.6 percent each and insurer Assicurazioni Generali has 30.6 percent.

The board of Telco is due to meet on Tuesday.

A second source said Telecom Italia had launched an impairment test on goodwill relating to deals done in the last decade, when asset prices were higher.

“The outcome will be announced at the next board meeting which will examine final results,” the source said.

The board of Telecom Italia is due to meet on March 7 to discuss final 2012 results.

In 2011 Telecom Italia carried out a goodwill writedown of 7.3 billion euros.

“A writedown of more than 2 billion euros is expected,” said Oriana Cardani, analyst at Centrobanca.

Another analyst said there would be no consequences from the writedown since it would be an accounting operation with no cash outlay. (Reporting By Stefano Rebaudo; Writing by Stephen Jewkes; Editing by Luca Trogni and David Cowell)

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