Boycott threat looms for Telecom Italia investment banks

NEWS Institutional investors are threatening to boycott Chase Manhattan and Lehman Brothers, the organisers of the scheme implemented to enable the buyout of Telecom Italia by Olivetti. Investors in Telecom Italia are threatening to turn their back on the two high profile investment banks for making a deal they consider not to be up to scratch. Under the Chase Manhattan and Lehman Brothers plan, investors with non-voting shares will be asked to pay a premium to convert these into shares with voting rights. Investors say the premium - worth close to half the price of the share - is far too high. If the deal goes through it will cut Olivetti's stake in Telecom Italia to 44 per cent and significantly reduce its debt mountain.