Telecom Italia has become the latest corporate to enter the loan market, following a busy year in 2004 that saw companies like Celanese, Vaillant and Wynn Resorts take advantage of falling fees and margins. The Italian telecoms operator is set to increase its debt to ?44 billion ($59.3 billion) in order to acquire the 44% it does not already own of Telecom Italia Mobile (TIM), its mobile phone arm. The offer, announced in December, is worth ?5.60 per share and is being funded by ?12 billion of loans in three repayment tranches, at 12, 36 and 60 months.
January 04, 2005