MILAN Telco, the holding company that controls Telecom Italia TLIT.MI, has written down its controlling stake in the Italian telecoms incumbent by 20 percent, two sources close to the situation said on Tuesday.
The sources said the Telco board had decided to mark down the price of Telecom shares on its balance sheet from 1.5 euros to 1.2 euros.
Telco, which owns 22.45 percent of the telecoms company, is 46.2 percent owned by Spain's Telefonica TEF.MC, while Italian banks Mediobanca MDBI.MI and Intesa Sanpaolo ISP.MI hold 11.6 percent each and insurer Assicurazioni Generali GASI.MI has 30.6 percent.
Telecom Italia shares were trading down 0.5 percent at 0.62 euros at 1425 GMT.
(Reporting By Stefano rebaudo and Stephen Jewkes)