The Telecom Italia Board of Directors met today in Milan, chaired by Franco Bernabè, ruling on the following items.
Partial spin-off of Matrix
The Board of Directors passed a resolution for the partial spin-off of 100%-owned subsidiary Matrix S.p.A., and the transfer of the “Market & Technology Captive” division to beneficiary company Telecom Italia. This move concludes the approvals process that commenced on 5 May 2011, as disclosed to the market on 6 May.
The spin-off process is expected to be completed by the end of the third quarter.
Capital increase to serve the employee share ownership plan
The Board of Directors passed a resolution regarding the free issuance of up to 8.915.442 ordinary shares, pursuant to an ad hoc proxy, in order to serve Phase 2 of the employee share ownership scheme approved by the Shareholders’ Meeting on 29 April 2010.
Provided that they continue to work at Group companies, employees who last year took up the offer to subscribe shares for payment and who retain the subscribed shares until 29 July 2011 shall be allocated one free share for every three shares subscribed for payment.
Initiation of 2011 long-term incentive plan
The Board of Directors passed a resolution regarding the initiation of a financial instrument allocation plan – the “Long Term Incentive Plan 2011” – as approved by the Shareholders’ Meeting on 12 April 2011. The long-term incentive scheme for Senior Executives, Top Management and selected managers is dependent upon achieving pre-established performance targets, associated with the 2011-2013 plan timespan, and identical for all three types of beneficiary.
Plan initiation is subject to an ad hoc disclosure pursuant to article 84  of the Issuer’s Regulations, in addition to the information document published on 10 March 2011.
Milan, 7 July 2011