On December 22, 2025, the financial world turned its attention to Milan, where a significant development involving Telecom Italia (TIM) and its unique class of savings shares took center stage. Davide Leone, a prominent London-based investor and the largest holder of TIM's savings shares, publicly endorsed the terms of a proposed conversion of these special shares into ordinary stock—a move with potential ramifications for both the company and its shareholders.
Telecom Italia, long regarded as one of Italy's telecommunications giants, has maintained a complex share structure for decades. Among its various classes of stock, the savings shares have always held a peculiar place. Unlike ordinary shares, savings shares typically come with limited or no voting rights but offer preferential treatment in terms of dividends. This arrangement was originally designed to attract investors seeking steady income rather than influence over company decisions. Over time, however, the dual structure has been criticized for complicating governance and potentially depressing the value of savings shares relative to ordinary stock.
Against this backdrop, the company’s recent proposal to convert savings shares into ordinary shares has been closely watched by investors, analysts, and corporate governance experts. The move is widely seen as an effort to simplify TIM’s capital structure, improve transparency, and potentially unlock additional value for shareholders. But such a change is never without controversy or risk, particularly for holders of the special shares who must weigh the potential benefits against the loss of certain privileges.
Davide Leone’s reaction to the proposal has been unequivocally positive. As reported by Global Banking and Finance Review and Reuters, Leone stated, “We acknowledge TIM demonstrated a market-friendly approach to the conversion of saving shares.” His support is significant not just because of his status—Leone’s London-based investment firm controls approximately 13% of TIM’s outstanding savings shares—but also because large holders often set the tone for how other investors will respond.
Leone went further, expressing optimism about the prospects for the conversion. “We expect the transaction to be successful,” he added in his statement. This endorsement suggests that the terms offered by TIM have struck a balance between the interests of savings shareholders and the broader goals of the company. According to Global Banking and Finance Review, market observers have interpreted Leone’s comments as a sign that the conversion could proceed smoothly, provided other major holders share his view.
But what exactly makes the proposed conversion “market-friendly”? While the precise terms have not been made public in the available reports, the phrase typically refers to conditions that are fair and equitable for all affected shareholders. In practice, this could mean offering savings shareholders new ordinary shares at a favorable exchange ratio, ensuring that their economic interests are protected or even enhanced. Companies often sweeten such deals with additional incentives or guarantees to win over skeptical investors.
For Telecom Italia, the stakes are high. The company has faced a challenging environment in recent years, with fierce competition, regulatory pressures, and shifting consumer habits all impacting its bottom line. Streamlining the share structure is seen as a way to make the company more attractive to institutional investors and to pave the way for future strategic moves, whether that means mergers, acquisitions, or new investments in infrastructure. Simplified governance could also help TIM respond more nimbly to market changes and regulatory demands.
Leone’s endorsement, therefore, carries weight not only because of his sizable stake but also because it signals confidence in the company’s leadership and strategic direction. As he runs a London-based investment firm, his perspective is likely informed by both deep financial expertise and a global view of how similar conversions have played out in other markets. In the past, such conversions have sometimes led to short-term volatility as investors adjust their holdings, but they can also result in long-term gains if the company’s fundamentals improve.
Of course, not every stakeholder is guaranteed to be satisfied. Some holders of savings shares may prefer the predictability of their current dividends over the potential upside of ordinary shares, which typically come with greater risk but also the possibility of higher returns. Others may be concerned about losing the distinct legal protections or tax advantages that sometimes accompany special share classes. It’s a delicate balancing act for TIM’s management, who must convince a broad and diverse group of investors that the conversion is in everyone’s best interest.
Market analysts have noted that the support of a major holder like Leone could be the tipping point in what is often a complex negotiation. According to Reuters, conversions of this sort generally require approval by a supermajority of affected shareholders, meaning that every percentage point counts. With Leone’s 13% stake, the likelihood of reaching the necessary threshold is significantly improved, though the outcome is by no means guaranteed until the final vote is tallied.
The company’s approach has also drawn attention for its transparency and willingness to engage with investors. As Leone observed, TIM’s “market-friendly” stance suggests a recognition that shareholder alignment is critical to the company’s future. In an era where activist investors and institutional shareholders wield increasing influence, open dialogue and fair treatment are more important than ever.
Looking ahead, the proposed conversion could serve as a bellwether for similar moves by other European companies with legacy share structures. The trend toward simplification is gaining momentum, driven by a desire for greater efficiency, improved governance, and enhanced access to capital markets. If TIM’s transaction is successful, it may encourage other firms to follow suit, potentially reshaping the landscape of European corporate finance.
For now, all eyes remain on Milan and on the outcome of the upcoming shareholder vote. With influential voices like Davide Leone in support, the odds appear to favor a smooth transition—but as anyone in finance will tell you, nothing is certain until the ink is dry and the shares have changed hands.
As the year draws to a close, TIM’s bid to unify its share classes stands as a testament to the evolving nature of corporate governance and the enduring importance of investor confidence. Whether this move will deliver the hoped-for benefits remains to be seen, but one thing is clear: the conversation about shareholder rights, company strategy, and market transparency is far from over.
