Telecom Italia SpA (BIT:TIT) said on Monday it had received an offer from Egyptian businessman Naguib Sawiris, who is interested in investing in the Italian telecoms company.
The firm noted that a document from Sawiris was read during last week’s board meeting. It only said that the businessman was considering investing in Telecom Italia via underwriting of new stock issuing, without unveiling the sum he was ready to spend.
The telecoms company disclosed the information upon request by the Italian Securities and Exchange Commission (Consob). Earlier today, both the Wall Street Journal and Italian newspaper Corriere della Sera reported that Sawiris was looking to buy a EUR5bn (USD6.4bn) stake in Telecom Italia. This would provide him with a 30% shareholding based on current market values, the WSJ said.
A potential capital raise would dilute the current shareholders, but bring in more cash which could be used for investments and debt reduction. At present, the company has some EUR29.5bn in net debt.