It seems that the intermediary appointments are a bid to help soothe various disgruntled shareholders from further conflict. The second largest shareholder, BT, is expected to be the first to withdraw from the troubled company before any deal is finalized.
The other major shareholders are Autostrade and Edizione, both of whom are members of the Benetton family conglomerate, and Palatinus, belonging to entrepeneur Francesco Caltigirone. The consulting partnership Booz Allen & Hamilton, and the legal practise of Baker & McKenzie will join the melting pot of interests as advisors.
The speculation of ownership was created after angry shareholders provided BT with an ultimatum to either increase its investment in the consortium or get out. The ultimatum came as the Italian Government threatened to penalise Blu GBP1.2 billion over its decision to withdraw from the auction of 3G mobile licenses in October 2000. BT had refused to bow to intense pressure to increase its share from non-telecom shareholders, making any bid fruitless.
In October BT stock had risen 11% in October at the news and on February 12 the news of BT eventual withdraw from Blu increased the company’s stock by 7.3%.
Ideally the consortium would seek to find a buyer of the entire network but with patience wearing thin it looks as if a partial sale may well be taken if offered.
