There is a duel in the house Telecom Italy. In view of the December 20 shareholders' meeting, there are many open fronts: after ISS, proxy advisor Glass Lewis also recommended the vote in favor of the proposal to revoke the board of directors, believing that the current board is not able to take initiatives that create value, especially if they conflict with Telefonica's interests.
In the meantime, the Board of Directors has admitted that the convertible was a transaction with related parties, a circumstance that will lead to a punishment by Consob. The issue was approved with the opposition of directors Lucia Calvosa and Luigi Zingales, who believe that Telefonica has been favored in the allotment phase. Lastly, the European Commission rejected the sender's decision by the Communications Regulatory Authority in which the Italian regulator set the prices for access to the network.
Analysts' opinions were mixed: Exane believes that Telecom has the best risk/return profile in the sector and confirms a target price of 0,85 euro for the stock with an outperform rating, while Ubs remains negative (sell recommendation and target price at 0,34 EUR).
Telcom shares lost 7,4% overall last week, while this morning they opened up 0,9%.
