Notice in accordance with Art. 41 of CONSOB reg. 11971/99

12/23/2004 - 00:00 PM

  • Notice in accordance with Art. 41 of CONSOB reg. 11971/99
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Milan , 21 December 2004 - Notice is hereby given that today Telecom Italia S.p.A. entered into an agreement whereby it bought up to 25 million Call options for the purchase of 50 million TIM S.p.A. ordinary shares (TIM IM) and 25 million TIM S.p.A. savings shares (TIMR IM).

The strike price is Euro 5,57 for each ordinary share and for each savings share. The options provide for physical or, alternatively, cash settlement, optional to Telecom Italia.

The options' expiry date is 31 January 2005 (save for extension of up to 30 days, at parties' discretion).

Telecom Italia S.p.A. has simultaneously entered into an agreement for the sale of up to 25 million Put options on the same amount of TIM S.p.A. ordinary shares (TIM IM) and of TIM S.p.A. saving shares (TIMR IM). Strike price conditions, settlement rules and expiry dates correspond to those provided for the Call options described above.

In the light of the public offering for the purchase of TIM ordinary shares and saving shares, as announced to the market by Telecom Italia, the transaction is intended to ensure to Telecom Italia the eventual purchase of an amount of TIM shares in line with its own objectives, with an adequate hedging against fluctuation of the price of shares under purchase at a level that is deemed consistent with the terms of the public offering.

The contact person for information purposes

Carlo De Gennaro

Last modified: 21 December 2004 - 10:38 AM -