Telecom Italia Bounces Back as BlackRock Boosts Stake

TIM shares are up 2.5% after a forgettable week, boosted by long-term investment from BlackRock, which has increased its stake beyond the 5% threshold. This move signals a vote of confidence in the Italian telecommunications giant. The EU Antitrust authority has indicated that a reduction to three operators would not be a major threat to competition or a detriment to Italian consumers. TIM and Iliad may resume talks in the future.

TIM shares have rebounded, rising 2.5% after a tumultuous week, buoyed by a significant long-term investment from BlackRock. The investment, which saw BlackRock's stake exceed the 5% threshold, signals a vote of confidence in the Italian telecommunications giant. The move follows a week in which TIM shares lost 8% amid speculation about a potential merger with Iliad, which has now been put on hold [2].

The market's sentiment towards TIM has been bolstered by the EU Antitrust authority's indication that a reduction to three operators would not pose a major threat to competition or be detrimental to consumers. This stance aligns with the EU's reciprocity with other countries and could pave the way for future consolidation talks between TIM and Iliad [3].

BlackRock's investment has been instrumental in restoring investor confidence in TIM. The investment firm's stake in TIM, now above the 5% threshold, underscores its belief in the company's long-term prospects. The EU Antitrust authority's position on operator consolidation also provides a supportive regulatory environment for potential mergers and acquisitions in the Italian telecommunications sector.

TIM's shares were trading at EUR0.42 by midday, up 2.5% from the previous week's low, reflecting the positive market reaction to BlackRock's investment and the EU Antitrust authority's stance. The Italian telecommunications market remains divided among four operators— TIM, Vodafone-Fastweb, Iliad, and WindTre—with increased pressure on prices likely to persist in the absence of consolidation.

In summary, TIM's recovery is driven by long-term investment from BlackRock and the supportive regulatory environment provided by the EU Antitrust authority. While the prospect of a merger with Iliad remains uncertain, the market's focus is now on TIM's ability to navigate the competitive Italian telecommunications landscape and capitalize on potential consolidation opportunities.

References:
[1] https://www.tradingview.com/news/reuters.com,2025-08-29:newsml_RSc3070Xa:0-reg-4imprint-group-plc-holding-s-in-company/
[2] https://www.marketscreener.com/news/tim-iliad-merger-talks-end-italian-telecom-market-remains-with-four-operators-ce7c50dcdc89f62d
[3] https://www.marketscreener.com/news/business-on-the-square-tim-begins-recovery-blackrock-injects-confidence-ce7c50d2df80f320