Sawiris initially approached Telefonica and the Telco consortium, the largest shareholder in Telecom Italia, about the possibility of carrying out a capital increase at the holding company level. He was rebuffed, so decided to approach the Italian company directly. "We are willing to participate in the capital increase, but shareholders have the choice not to get diluted and join in putting the money," he said. "If they do not want to, we will come and replace them. But they will benefit from a higher stock price and a more stable company and a company that will grow."
Sawiris said he was also considering bringing in former executives from Wind, the Italian operator he previously controlled before selling most of his assets to Vimpelcom. "This proposal will provide a more stable financial structure for Telecom Italia going forward, more growth in Latin America and Brazil, and improved management through the infusion of people who have an excellent knowledge of the Italian market," Sawiris told Reuters.
He also said he was opposed to the proposal of spinning off Telecom Italia's fixed-line network, which is backed by some core investors as a way to raise cash, and by the Italian government as a means to speed up broadband investment. "I believe this is a catastrophe," Sawiris said. "If Telecom Italia does that, they will lose the only differentiator they have left in the telecom market in Italy."
