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Telecom Italia is expected to receive a €1bn ($1.1bn) windfall from the Italian government after a court ruled in its favor in a legal case dating back to the late 1990s. The government has been ordered to pay back €530mn ($575mn) plus interest for licensing fees paid by the company which were actually not due. Telecom Italia confirmed the ruling and said that it will initiate a process to recover the funds while the Italian government plans to appeal the ruling. The news comes as a relief to the company as it has been actively trying to reduce its debt burden by selling its assets, as evidenced by earlier reported news of its grid sale for €22bn ($23.9bn) and asset sale for €1bn. Its shares gained 6.5% in yesterday’s trading session.
Telecom Italia’s dollar bonds traded stable with its 6.375% 2033s at 93.8 cents on the dollar, 7.29%.
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