ITALY: Government considering changes to Italy takeover mandatory bid rules

Friday September 27 2013

It is being reported that the Italian government is considering changes to Italy takeover mandatory bid rules, and that could require shareholders who own less than 30% of a company to launch a takeover bid.

One proposal being discussed is allowing companies to set a threshold in their own statutes below the one set by law.

Under the current rules, an investor holding 30% or more of a company`s shares is required to make a bid for the rest.

The proposals come after Spain`s Telefonica publicised a deal this week to take full ownership of a holding company that controls Italy`s dominant telecoms group, Telecom Italia. The holding company, Telco, owns 22.4 percent of Telecom Italia.

Under the current rules, Telefonica would only be obliged to buy the rest of Telecom Italia if it took a controlling stake in Telco and if Telco`s stake in Telecom Italia exceeded 30 percent, market watchdog head Giuseppe Vegas said on Thursday.

Media reports have also indicated that the government is seeking to pushing through changes to its veto powers on strategic changes in the energy, transport and telecommunications sectors. Reports state that the special powers could be extended to the network of Telecom Italia and to cover companies in the communications sector where national interests are at stake.

This information will be updated as further details become available.