Published by Global Banking & Finance Review®
Posted on January 25, 2025
2 min readLast updated: January 27, 2026
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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.
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)
The Italian government requested to suspend a 1 billion euro payment to Telecom Italia pending a final decision in a dispute.
An appeals court rejected the government's request to freeze the payment, leading to a rise in TIM's shares.
Italy's Supreme Court is expected to rule later this year after the government appealed against a lower court decision.
The amount of the payment has doubled due to interest since the dispute dates back to 1998.
TIM's Chief Executive mentioned that any cash from the case could be used to support shareholder reward plans.
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