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    Home > Finance > Court rejects Italy's request to freeze 1 billion euro payment to TIM
    Finance

    Court rejects Italy's request to freeze 1 billion euro payment to TIM

    Published by Global Banking & Finance Review®

    Posted on January 25, 2025

    2 min read

    Last updated: January 27, 2026

    An image illustrating the Italian court's decision to deny the government's request to freeze a €1 billion payment to Telecom Italia (TIM), impacting the finance sector's landscape.
    Italian court ruling on TIM payment dispute reflects finance sector dynamics - Global Banking & Finance Review
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    Tags:telecommunicationsfinancial managementcorporate bondsGovernment fundingcapital gains

    Quick Summary

    An Italian court rejected the government's request to freeze a €1 billion payment to TIM. The dispute, dating back to 1998, awaits a Supreme Court ruling.

    Italian Court Denies Government's Bid to Halt €1 Billion TIM Payment

    MILAN (Reuters) - An appeals court has rejected an Italian government request to suspend a 1 billion euro ($1 billion) payment to Telecom Italia (TIM) pending a final decision in a dispute linked to the liberalisation of the telecoms sector, the ruling showed.

    Shares in TIM rose after the decision was made public on Wednesday, but gave up most of the gains to stand 0.5% higher by 1423 GMT.

    Italy's Supreme Court later this year is expected to rule after the government appealed against a lower court decision that found against it last April.

    Pending the final outcome of the case, which dates back to 1998, the government had asked for the freezing of the payment. The sum has doubled in size because of interest.

    TIM said in a note it had been informed of the decision.

    Lawyers representing the government did not respond to requests for comment.

    TIM Chief Executive Pietro Labriola said in November that any cash from the case could be used to support shareholder reward plans.

    ($1 = 0.9588 euros)

    (Reporting by Elvira Pollina and Paolo Chiriatti; Writing by Cristina Carlevaro, editing by Giulia Segreti, Keith Weir and Barbara Lewis)

    Key Takeaways

    • •Italian court denies government's request to freeze TIM payment.
    • •The payment dispute is linked to telecom sector liberalisation.
    • •TIM shares initially rose but settled 0.5% higher.
    • •The case dates back to 1998 and involves accrued interest.
    • •Italy's Supreme Court will make a final ruling later this year.

    Frequently Asked Questions about Court rejects Italy's request to freeze 1 billion euro payment to TIM

    1What was the Italian government's request regarding the TIM payment?

    The Italian government requested to suspend a 1 billion euro payment to Telecom Italia pending a final decision in a dispute.

    2What was the outcome of the appeals court's decision?

    An appeals court rejected the government's request to freeze the payment, leading to a rise in TIM's shares.

    3When is Italy's Supreme Court expected to rule on the case?

    Italy's Supreme Court is expected to rule later this year after the government appealed against a lower court decision.

    4How has the amount of the payment changed since the dispute began?

    The amount of the payment has doubled due to interest since the dispute dates back to 1998.

    5What did TIM's Chief Executive say about the potential cash from the case?

    TIM's Chief Executive mentioned that any cash from the case could be used to support shareholder reward plans.

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