London-based Investment Firm Unveils Surprise Plan for Telecom Italia

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Merlyn Advisors Ltd, led by former JPMorgan banker Alessandro Barnaba, proposes to halt the sale of Telecom Italia's landline network and replace the CEO. The plan suggests a merger with Open Fiber, excluding the smaller rival's metropolitan areas, to eliminate antitrust risks. Italy's state lender, Cassa Depositi Prestiti, would have a strategic role in the new company. Merlyn proposes former Telecom Italia deputy managing director Stefano Siragusa as the new CEO.

-- A London-based investment firm led by former JPMorgan Chase & Co. banker Alessandro Barnaba unveiled a surprise plan for Telecom Italia SpA that would halt the sale of its landline network and replace the company’s chief executive officer.Everything Apple Plans to Launch at Oct. 30 ‘Scary Fast’ Mac EventS&P 500 Extends Slide From Its July Peak to 10%: Markets Wrap

The plan proposes an eventual merger between Telecom Italia and Open Fiber SpA without the smaller rival’s metropolitan areas, which would eliminate antitrust risks, according to the document. Merlyn called Telecom Italia CEO Pietro Labriola’s performance “truly disappointing” and proposed former Telecom Italia deputy managing director Stefano Siragusa to replace him. Siragusa’s alternative asset manager company RN Capital Partners joined Merlyn in the proposal.

Merlyn’s move could be a strategic assist for the French media conglomerate Vivendi SE, which has opposed the deal for months saying it wouldn’t accept any network offer of less than €30 billion. A spokeswoman for Vivendi declined to comment on the Merlyn letter.

 

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