Telecom Italia stock plummets on capital increase rumours

Trading suspended after stock sinks 4.88% in 30 minutes

Telecom Italia stock plummets on capital increase rumours

Milan, July 31 - Stock in the troubled ex-monopoly Telecom Italia plummeted on Wednesday amid press rumours of a possible capital increase. Trading was suspended after Telecom Italia stock fell 4.88% to 0.51 euro in 30 minutes. The newspaper Il Messaggero reported that Telecom Executive Chairman Franco Bernabe' was convening a ''pre-board meeting'' to ''put the hypothesis of a recapitalization on the table''. Telecom Italia's stock price dipped to 16-year lows in July as the company back-tracked on plans to spin-off its fixed-line network. Standard and Poor's cut Telecom's rating in late May to just above junk, from BBB to BBB-, citing poor economic conditions in Italy and competition from mobile telephone networks, reported Bloomberg news agency.

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