UPDATE 1-T.Italia investor attacks Telefonica stake

* Critic Findim owns 5 pct of Telecom Italia

* Findim mulls EU appeal over T. Argentina stake-source

* Telecom Italia shares flat

(Adds comments on Telecom Argentina stake)

MILAN, June 3 (BestGrowthStock) – A big Telecom Italia (TLIT.MI: )
shareholder on Thursday attacked Telefonica’s (TEF.MC: ) stake in
the Italian phone giant, saying the Spanish company had a
conflict of interest.

The Telco group of Telefonica and Italian investors Generali
(GASI.MI: ), Intesa Sanpaolo (ISP.MI: ) and Mediobanca (MDBI.MI: )
control Telecom Italia with a 22.45 percent stake.

Telefonica has played down speculation in recent months that
it might launch a takeover bid for Telecom Italia and instead
has offered a sweetened 6.5 billion euros ($7.99 billion) for
Portugal Telecom’s (PTC.LS: ) stake in Brazilian mobile operator
Vivo (VIVO4.SA: ). [ID:nN01124414]

“Telefonica’s leadership has declared that it has no plans
to do a deal with Telecom Italia,” Marco Fossati, who holds a
stake of about 5 percent in Telecom Italia through his holding
company Findim, told Reuters.

“They’ve shown their main interest in Brazil with the offer
on Vivo … I ask myself what advantage Telecom Italia has by
having a Spanish shareholder. The conflict of interest seems
evident to me.”

Fossati said Telecom Italia’s plans to sell its stake in
Argentine phone company Telecom Argentina (TEC2.BA: ) because of
antitrust concerns related to Telefonica’s stake in the Italian
company was one example of the Spanish giant’s conflict of
interest. [ID:nN02246176]

A Findim source said it is examining the possibility of an
appeal to the EU authorities against a sale of Telecom Italia’s
stake in the Argentina telecom operator in a move aimed at
protecting Findim interests.

The risk is that Telecom Italia sells the stake based on
multiples of 3-4 times EBITDA rather than above 10 times seen in
similar operations in Brazil, the source said.

At 1438 GMT Telecom Italia shares were flat at 0.9615 euros.
The STOXX Europe 600 Telecoms (.SXKP: ) index was up 1.14 percent.

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($1=.8131 Euro)
(Reporting by Stefano Rebaudo; Editing by Jon Loades-Carter)

UPDATE 1-T.Italia investor attacks Telefonica stake