Investor Alert

July 6, 2011, 1:49 p.m. EDT

Telecom Italia investor Telco slices book value

By Liam Moloney

ROME -(MarketWatch)- Telecom Italia SpA's main shareholder Telco--a holding company that includes Spain's phone giant Telefonica SA (MCE:ES:TEF) and Intesa Sanpaolo SpA (ISP.MI), said Wednesday it reported a yearly loss after a EUR1.20 billion writedown in Italy's former telephone monopoly.

Telco, which holds a 22.4% stake in Telecom Italia, said its board approved the results for the fiscal year ending April 30, which closed with a EUR1.15 billion loss.

In a statement, Telco said that after this writedown its investment in Telecom Italia is now booked at EUR5.41 billion, or EUR1.80 a common share. The book value is 18% lower than the previous EUR2.20 a share figure.

Investment vehicle Telco also comprises Italian banks Mediobanca SpA (MB.MI) and Intesa Sanpaolo SpA (ISP.MI) and insurer Assicurazioni Generali SpA (G.MI).

Telecom Italia website: www.telecomitalia.it

(Gilles Castonguay in Milan contributed.)

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