Around 11 on a Wednesday morning Telecom Italy it's a roller coaster in the stock market. After starting trading with a sharp drop, reaching -3% at 0,433 euro, the stock - which yesterday, Tuesday 22 January, reached new lows (-6,24%) recorded a sharp recovery. With a real surge, the quotations reversed to gain 1,41% to 0,451. Last Thursday evening, since the announcement of the 2018 preliminary results, Tim shares lost about 14% of their value on the stock market.
A temporary flare-up, followed by a return to the red (-0,38% to 0,444 euros), attributable to the latest positions taken by the Elliott Fund, a TIM shareholder with 8,8% of the capital, and in favor not only of the spin-off of the copper access network but also to the hypothesis of a single network between Telecom Italia and Open Fiber so much so that he asked the Board of Directors to quickly convene a table to negotiate the operation. In Elliott's intentions, Cassa Depositi e Prestiti (which owns 50% of Open Fiber and is also a shareholder of Tim with around 5%) should also be present at this table, as well as Enel (another Open Fiber shareholder with the remaining 50% %) and other relevant actors.
The volatility of the share therefore remains high in this phase of the difficult internal dispute between the shareholders, also demonstrated by thehigh number of exchanges reached over 85 million pieces two hours after the start of trading. Tuesday's volumes were 387,088,000 pieces traded, higher than both the previous session and the weekly average. Participation of operators is intensifying, likely the start of a phase of high volatility.
From the beginning of May 2018, when the shareholders' meeting gave the majority of the Board of Directors to the list proposed by Elliott, the stock lost about 50%. The collapse in the Stock Exchange has been reflected in the capitalization which is now around 9,1 billion euros. With Agcom distancing itself from the voluntary separation project of Telecom into an ad hoc company (there could be no changes such as to allow for a modification of the regulatory framework if not accompanied also by a change of ownership on the network), TIM's management would be evaluating various hypotheses.
