Latest News

Draft shows that Italy will apply a single threshold of 30% for mandatory bids

A draft decree, seen by on Wednesday, showed that Italy intends to remove the lower thresholds for large companies and instead apply a 30% threshold for all mandatory takeover offers in listed companies. This is part of a larger reform of Italy's decades-old Financial Code.

In the absence of a second shareholder with a larger shareholding, a shareholder's stake in a large company must exceed a threshold of 25% to trigger a mandatory bid.

Small and medium sized businesses are subject to a second threshold of 30%. Italy classifies a business as SMEs if its capitalisation falls below 1 billion euro ($1.16 billion).

The draft decree confirms an April report and sets a 30% threshold for all companies, regardless of their size.

Poste Italiane, a state-backed financial conglomerate, is the largest shareholder in Telecom Italia with a 24,8% stake.

Poste may be able to buy more TIM shares, without having to make a buyout bid, thereby strengthening its grip on TIM.

Rome intends to reduce the time period that is taken into consideration when calculating the bid price for a takeover to six months, from twelve months.

Consob, the market watchdog, will be able also to set a date by which a bidder is required to announce their decision to bid. A bidder who does not respond or replies negatively will be banned from making a bid in the next 12 months.

A government official stated that the decree was expected to be approved later today by the Cabinet.

The administration of Prime Minister Giorgia Mello has stated that it intends to reform Italy's Financial Law after consulting with different stakeholders and industry groups. It is also looking for ways to strengthen the role played by the 200-year old Borsa Italiana.

Meloni, who has made a U-turn after decades of policies that favored corporate takeovers and corporate listing in Milan, is encouraging business owners to list without fearing losing control to other parties.

On the other hand, asset managers, including large foreign funds advocate rules that prevent a concentration in power.

Multiple representatives of Italy's finance industry expressed concerns last year over a measure by the government that gave investors more say in how outgoing boards of companies present a list for candidates for the next terms.

(source: Reuters)