Telecom Italia Offers to Buy Back Up to $750 Million of Bonds
Telecom Italia SpA (TIT), Italy’s biggest phone company, is offering to buy back as much as $750 million of bonds issued by its finance unit, Telecom Italia Capital SA.
The tender offer, expiring at midnight New York time on June 12, will help Telecom Italia manage its upcoming debt maturities, the Milan-based company said in a statement.
The former Italian monopoly is seeking to reduce debt by selling assets and cutting jobs as a recession in its home market curbs sales. It posted first-quarter earnings last week that missed analysts’ estimates, as operating income in Italy fell 10 percent.
Telecom Italia is offering to buy back 5.25 percent notes due 2015, 4.95 percent notes maturing in 2014, and 6.175 percent notes also due next year, it said in the statement.
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