Giovedì, 18 Ottobre 2018
MILAN

Telecom Italia shares soar on Sanford Berstein report

English
© ANSA

Milan, August 30 - Trading was suspended in Telecom
Italia (TI) on Friday as shares soared a theoretical 9.25% at
the troubled telecommunications company.
The rally followed an analyst's report from Sanford
Bernstein ranking stock in Italy's largest phone company as
''outperform'' - meaning it is likely to outperform the market
index, but still falls short of a ''buy'' recommendation - and
posted a target price of .9 euro per share, or roughly 80% more
than the prevailing prices for TI shares this summer.
Reasons given for brighter investment prospects were that
''Vodafone, Telefonica and AT&T'' could show interest in taking
over the ex-State telephone monopoly.
Moreover, Telecom Italia's major shareholders might double
their own investments in the near future, analyst Robin
Bienenstock wrote.
TI led not only the FTSE MIB index of the Milan bourse,
which was down .94% at 14:45, but also ranked among top
performers in the European Stoxx 600 index on Friday.
Frenzied trading in TI stock reached more than 100 million
units before being suspended.
The positive report and price surge mark at least a
temporary reversal of fortune at TI.
On August 5, Fitch cut Telecom Italia's Long-term Issuer
Default Rating (IDR) to 'BBB-' from 'BBB', with a negative
outlook, adding to a host of problems facing Italy's biggest
telephone company.
On the day of the ratings report, shares crept down 1.24%
on the Milan bourse to 0.48 per share - one of its lowest levels
in 16 years.
TI reported first half losses of 1.4 billion euros and
issued a profit warning for the year. Results were pummeled by
2.2 billion euros in goodwill writedowns.
The rating downgrade also followed news that the company's
rival Vodafone Italia filed a civil lawsuit seeking more than
one billion euros in damages for TI's alleged abuse of its
dominant position on the fixed-line telephone network in Italy.
The lawsuit came after the Italian antitrust authority in
May fined TI 103 million euros on similar charges.
TI has appealed the antitrust ruling and rebuffed
Vodafone's accusations, saying the company is confident it will
''succeed in demonstrating the absolute correctness of its own
behaviour''.

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