At the end of November BlackRock lifted its
holding to 10.1 percent from the 5.1 percent it held in October,
giving it a potentially pivotal role in a Dec. 20
shareholder vote on whether to oust the board of the telecoms
BlackRock informed the U.S. Securities and Exchange Commission
about its investment at the beginning of December but it did not
tell Consob within a five-day deadline.
The regulator has asked the U.S. group to make a stock exchange
statement on what its stake in the Italian company is and
whether it intends to be present at the next shareholders
meeting on Friday, Consob's Giuseppe Vegas told daily Il Sole 24
Ore on Sunday.
BlackRock is required to answer before trading starts on Monday.
"Our immediate reaction is the sanction procedure, we can impose
a fine of maximum 500,000 euros ($700,000)," Vegas was quoted as
saying by the newspaper.
Consob could also temporarily suspend BlackRock's voting rights
on the stake not declared, Vegas said.
An official for BlackRock declined to comment.
With its November investment, BlackRock became the
second-largest shareholder in Telecom Italia.
According to Vegas, BlackRock continued to buy shares in
December. It is unclear by how much the U.S. investor had
increased its stake from 10.1 percent, he said.
Telecom Italia was also required to make a statement to the
exchange on when it was informed by BlackRock about its
investment by before the market opens on Monday, Vegas said.
(Reporting by Francesca Landini in
Milan; additional reporting by Christopher Vellacott; editing by
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