Regarding today's decision by the Italian Antitrust Authority (AGCM) to sanction Telecom Italia, the Company states that it has always assured alternative operators full and equal access to its network, in compliance with the current regulations, also thanks to the voluntary implementation of the 'Open Access and undertakings' model, appreciated as best practice at European level and recognised as such by the EU and by BEREC (the European regulatory Body).
Telecom Italia therefore intends to appeal the Regional Administrative Tribunal confident to prove the fairness of its practices before the judicial authorities.
The Company points out that the Open Access model, since 2008, has always been subject to close scrutiny and oversight by the Italian Communications Authority (AGCOM) and the Supervisory Body (OdV) which have consistently recognised its good functioning and coherence with the stated objectives of parity of access to all operators to the Telecom Italia network.
On the other hand, the numbers bear out the inconsistency of AGCM’s theory: the three years following the introduction of the new structure have seen the steady growth in market share of the OLOs both in fixed-line voice and broadband access.
Likewise, all the parameters confirmed by the oversight of the OdV show that there has always been full equality of treatment towards the operators both in terms of activation time for services and of technical support.
Missing acceptance of line activation requests were often due to incorrect requests: indeed, the percentage of orders rejected ranges from less than 10% for OLOs who send in more correct orders to over 60% for those who send requests containing more errors.
The absence of any discriminatory behaviour within the technical support is confirmed by all the 2012 certified data showing full equality of treatment between the commercial divisions of Telecom Italia and the alternative operators in average telephone fault repair time, percentage of telephone faults repaired by the second day and finally of overall availability.
These indicators demonstrate that the alternative operators have been enjoying services on a par with, if not actually better than, the commercial divisions of Telecom Italia.
Rome, 10 May 2013
Subject to the terms and conditions of the tender offer, holders of TI Capital Notes who validly tendered their TI Capital Notes at or prior to the Early Tender Date will be entitled to receive the Total Consideration, plus accrued and unpaid interest on the TI Capital Notes purchased from the last interest payment date on such TI Capital Notes up to, but not including, the Settlement Date for such TI Capital Notes.
Telecom Italia has elected to exercise its right to cause an early settlement of the TI Capital Notes, which Early Settlement Date is expected to be June 3, 2013, subject to certain closing conditions contained in the Offer to Purchase. Because the tender offer has been oversubscribed, Telecom Italia will not accept for purchase any additional TI Capital Notes.
Withdrawal rights for the offer have expired and have not been extended. Telecom Italia may amend, extend or terminate the offer at any time.
Telecom Italia has engaged Morgan Stanley & Co. LLC to act as Sole Structuring Advisor and Dealer Manager, and Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., Natixis Securities Americas LLC and UBS Limited to act as Joint Dealer Managers in connection with the tender offer. Telecom Italia has engaged D.F. King & Co., Inc. to act as the tender agent and information agent in connection with the tender offer. Questions regarding the tender offer may be directed to Morgan Stanley & Co. LLC at (800) 624-1808 (toll free) or (212) 761-1057 (collect), Credit Agricole Securities (USA) Inc. at (866) 807-6030 (toll free) or +44 (0) 20 7214 7440 (collect), HSBC Securities (USA) Inc. at (888) HSBC-4LM (toll free) or (212) 525-5522 (collect), Natixis Securities Americas LLC at (866) 245-0436 or UBS Limited at (888) 719-4210 (US toll free), (203) 719-4210 (US collect) or +44 (0) 20 7567 0525 (international collect). Requests for documentation relating to the tender offer may be directed to D.F. King & Co., Inc., at (800) 549-6746 (toll free) or (212) 269-5550 (collect).
This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell with respect to any TI Capital Notes nor is this announcement an offer to sell or a solicitation of an offer to purchase new debt notes. The tender offer is being made solely pursuant to the Offer to Purchase and the related Letter of Transmittal, which set forth the complete terms of the tender offer.
The Telecom Italia Group operates mainly in Europe, South America and the Mediterranean Basin and is engaged principally in the communications sector and, particularly, the fixed and mobile national and international telecommunications sector. For more information, visit www.telecomitalia.com.
Forward-Looking Statements: This news release includes forward-looking statements concerning, among other things, the tender offer, including the terms and timing of the tender offer. Such expectations are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans, and are subject to a number of risks and uncertainties inherent in projecting future conditions, events, and results. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from such expectations are detailed in Telecom Italia’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of Telecom Italia’s Annual Report on Form 20-F for the year ended December 31, 2012.
Disclaimer: Each holder is solely responsible for making its own independent appraisal of all matters as such holder deems appropriate (including those relating to the relevant Offer) and each holder must make its own decision as to whether to tender any or all of its TI Capital Notes for purchase pursuant to such Offer.
None of the Dealer Managers, the Tender Agent, the Information Agent, the trustee of the TI Capital Notes or any of their respective affiliates assumes any responsibility for the accuracy or completeness of the information concerning the Company, the TI Capital Notes or the Offer contained in this announcement or in the Offer to Purchase. None of the Dealer Managers, the Tender Agent, the Information Agent, the trustee of the TI Capital Notes or any of their respective affiliates is acting for any holder, or will be responsible to any holder for providing any protections which would be afforded to its clients or for providing advice in relation to the Offer, and accordingly none of the Dealer Managers, the Tender Agent, the Information Agent, the trustee of the TI Capital Notes or any of their respective affiliates assumes any responsibility for any failure by the Company to disclose information with regard to the Company or the TI Capital Notes which is material in the context of the Offer and which is not otherwise publicly available.
None of the Dealer Managers, the Tender Agent, the Company, the Information Agent, the trustee of the TI Capital Notes or any of their respective affiliates make any representation or recommendation whatsoever regarding the Offer, or any recommendation as to whether holders should tender TI Capital Notes in the Offer.
This announcement must be read in conjunction with the Offer to Purchase. This announcement and the Offer to Purchase contain important information which should be read carefully before any decision is made with respect to the Offer. If any holder is in any doubt as to the contents of this announcement or the Offer to Purchase or the action it should take, it is recommended to seek its own financial and legal advice, including in respect of any tax consequences, immediately from its stockbroker, bank manager, solicitor, accountant or other independent financial, tax or legal adviser.
None of the Offer, the Offer to Purchase or any other documents or materials relating to the Offer have been or will be submitted to the clearance procedures of the Commissione Nazionale per le Società e la Borsa (CONSOB) pursuant to Italian laws and regulations. The Offer is being carried out in the Republic of Italy (Italy) as exempted offers pursuant to article 101-bis, paragraph 3-bis of the Legislative Decree No. 58 of 24 February 1998, as amended (the Financial Services Act) and article 35-bis, paragraph 4 of CONSOB Regulation No. 11971 of 14 May 1999, as amended. Any holder or beneficial owner of the TI Capital Notes may tender its TI Capital Notes in the Offer through authorized persons (such as investment firms, banks or financial intermediaries permitted to conduct such activities in the Republic of Italy in accordance with the Financial Services Act, CONSOB Regulation No. 16190 of 29 October 2007, as amended from time to time, and Legislative Decree No. 385 of 1 September 1993, as amended) and in compliance with applicable laws and regulations or with requirements imposed by CONSOB or any other Italian authority. Each intermediary must comply with the applicable laws and regulations concerning information duties vis-à-vis its clients in connection with the TI Capital Notes or the Offer to Purchase.
For transfer restrictions related to countries other than Italy, please read carefully the “Offer and Distribution Restrictions” section of the Offer to Purchase.
Neither the Offer to Purchase nor the Letter of Transmittal constitutes an offer to buy or the solicitation of an offer to sell securities (and tenders of TI Capital Notes for purchase pursuant to the Offer will not be accepted by Telecom Italia S.p.A.) in any circumstances in which such offer or solicitation is unlawful. In those jurisdictions where the securities, blue sky or other laws require the Offer to be made by a licensed broker or dealer and the Dealer Managers or any of their respective affiliates are such licensed brokers or dealers in any such jurisdiction, the Offer shall be deemed to be made by such Dealer Managers or such affiliates, as the case may be, on behalf of Telecom Italia S.p.A. in such jurisdiction. In addition, each holder of the TI Capital Notes participating in the Offer will be deemed to give certain representations in respect of the other jurisdictions referred to above and generally as set out in the Letter of Transmittal. Any tender of TI Capital Notes for purchase pursuant to the Offer from a holder of the TI Capital Notes that is unable to make these representations will not be accepted. Each of Telecom Italia S.p.A. and each Dealer Manager reserves the right, in its absolute discretion, to investigate, in relation to any tender of TI Capital Notes for purchase pursuant to the Offer whether any such representation given by a holder of the TI Capital Notes is correct and, if such investigation is undertaken and as a result Telecom Italia S.p.A. determines (for any reason) that such representation is not correct, such tender or submission may be rejected.
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, New York 10005
US Toll Free: (800) 549-6746
Collect: (212) 269-5550
Email: telecomitalia@dfking.com
Morgan Stanley & Co LLC
1585 Broadway, Floor 04
New York, New York 10036
Attn: Liability Management Group
US Toll Free: (800) 624-1808
Collect: (212) 761-1057
Credit Agricole Securities (USA) Inc.
1301 Avenue of the Americas
New York, New York 10019
Attn: Liability Management Department
US Toll Free: (866) 807-6030
Collect: +44 (0) 20 7214 7440
HSBC Securities (USA) Inc.
452 Fifth Avenue
New York, New York 10018
Attn: Liability Management Group
US Toll Free: (888) HSBC-4LM
Collect: (212) 525-5522
Natixis Securities Americas LLC
1251 Avenue of the Americas
New York, New York 10020
Telephone: (866) 245-0436
UBS Limited
1 Finsbury Avenue
London EC2M2PP
Attn: Liability Management Group
US Toll Free: (888) 719-4210
US Collect: (203) 719-4210
International Collect: +44 (0) 20 7567 0525
Rome, 30 May 2013
