Telecom Italia Sets €400 Million Stock Buyback, Reverse Split

Telecom Italia SpA’s board proposed an up to €400 million ($471 million) stock buyback and a 1-for-10 reverse stock split, moving to overhaul its equity profile after selling off assets.

The board announced the company’s first share repurchase in years on Tuesday, linking it to proceeds from the sale of submarine cable unit Sparkle. Directors said the reverse split is aimed at attracting a broader class of institutional investors, by reducing the number of shares outstanding and curbing price volatility.