Confident in cash, investment position: Telecom Italia Chair


Telecom Italia's Chairman denied the company is planning a stock conversion to raise further funds, telling CNBC that the company was sitting on a comfortable amount of cash.

Speaking to CNBC on the sidelines of the European House-Ambrosetti Forum, Telecom Italia Chairman Giuseppe Recchi said that while the company had previously studied a stock conversion that would exchange savings stocks to common shares, there was "no active plan on the table."

Giuseppe Recchi, chairman of Telecom Italia, speaks with d
Matthew Lloyd | Bloomberg | Getty Images

As it stands, Recchi said Telecom Italia had enough cash at its disposal keep up with technological demands.

"Every big telco is focusing on investing in the next generation network and I think we have the resources to do it," Recchi told CNBC.

The company earlier this year raised 780 million euros ($869 million) after completing an IPO of its wireless tower unit, Infrastrutture Wireless Italiane.

"So cash wise, we're pretty ok." Recchi explained.

The company is now planning to deploy a 10 billion euro ($11.1 billion) plan over the next three years, which Recchi says will make it the biggest investor in Italy, across all its industries. But Telecom Italia is likely to focus more on dominating the home market than joining forces with other European telcos, the chairman suggested.

"There is a lot of speculation about the cross border consolidation happening in Europe," he said.

"And again we don't see much value in that."

Companies which have already reached a certain size won't gain any value from getting any bigger, Recchi said.

"The real value is instead in the transformation of the business model," Recchi explained, pointing to partnerships with content providers including Sky, Mediaset and Netflix.

"So the convergence of the media into the telco distribution, that is all to be explored."