TIM Court win unlocks capital restructuring

The nearly 30-year dispute between Telecom Italia (TIM) and the Italian government has come to an end. Italy’s Supreme Court ruled in favor of TIM, rejecting the government’s appeal and confirming the company’s right to receive more than €1 billion. The amount includes the original concession fee paid in the late 1990s, as well as revaluation and accrued interest.

An Extraordinary and Ordinary Shareholders’ Meeting will take place on Jan. 28, 2026, at which investors will vote on a proposal to convert savings shares into ordinary shares.

On the same day, a special meeting of savings shareholders will also be convened to approve the transaction.

Under the proposal, holders of savings shares would be offered a voluntary conversion on a one-for-one basis, with one ordinary share plus a cash payment of €0.12 per savings share.

One of the main protagonists in the process is Davide Leone, who holds more than 10% of TIM’s savings shares and has publicly expressed his support for the conversion.

“We recognize that TIM has demonstrated a market-friendly approach to the conversion of savings shares. The proposed terms of the conversion appear to offer an attractive deal for both ordinary and savings shareholders. In light of this, we expect the transaction to be successful,” he said.

The proposed plan also includes a voluntary reduction of TIM’s share capital to €6 billion, a measure that is inseparably linked to the conversion and aimed at simplifying the company’s capital structure.

Following the announcement, savings shares rose about 2–3%, while ordinary shares fell by around 5%, reflecting differing investor reactions to the proposed transaction.

Benedetta Zimone