================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
(Amendment No. 12)
------------------------------
TELECOM ITALIA S.p.A.
(Name of Issuer)
Ordinary Shares of euro 0.55 par value each 87927W10
(Title of class of securities) (CUSIP number)
Alexander Rosenzweig, Esq.
Vice President and Chief Legal Officer
Pirelli North America, Inc.
246 Stoneridge Drive
Suite 400
Columbia, South Carolina 29210
(803) 951-1040
With a copy to:
Ellen J. Odoner, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153
(212) 310-8000
(Name, address and telephone number of person authorized
to receive notices and communications)
May 9, 2002
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
[ ].
Note: Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Rule 13d-7
for other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 17 Pages)
NY2:\1155454\07\_RJY07!.DOC\67793.0060
------------------------------------------------------------- ---------------------------------------------------------
CUSIP No. 87927W10 13D Page 2 of 17
------------------------------------------------------------- ---------------------------------------------------------
------------------------ --------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON PIRELLI S.p.A.
I.R.S. IDENTIFICATION NO. Not Applicable
OF ABOVE PERSON
------------------------ --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
------------------------ --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------ --------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: BK, WC
------------------------ --------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
------------------------ --------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Italy
------------------------ --------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- --------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 2,891,656,682
OWNED BY (See Item 5)
EACH ------------------- --------------------------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER: 0
PERSON WITH
------------------- --------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER: 2,891,656,682
(See Item 5)
------------------------ --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 2,891,656,682
(See Item 5)
------------------------ --------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
------------------------ --------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 54.96%
(See Item 5)
------------------------ --------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
------------------------ --------------------------------------------------------------------------------------------------------
2
------------------------------------------------------------- ---------------------------------------------------------
CUSIP No. 87927W10 13D Page 3 of 17
------------------------------------------------------------- ---------------------------------------------------------
------------------------ --------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Olimpia S.p.A.
I.R.S. IDENTIFICATION NO. Not Applicable
OF ABOVE PERSON
------------------------ --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
------------------------ --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------ --------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
------------------------ --------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
------------------------ --------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Italy
------------------------ --------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- --------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: See Item 5
OWNED BY
EACH ------------------- --------------------------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER: 0
PERSON WITH
------------------- -------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER: See Item 5
------------------------ --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: See Item 5
------------------------ --------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
------------------------ --------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): See Item 5
------------------------ --------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
------------------------ --------------------------------------------------------------------------------------------------------
3
This Amendment No. 12 amends the Statement on Schedule 13D
dated August 9, 2001, as amended (as previously amended, the "Statement on
Schedule 13D"), filed by Pirelli S.p.A., a company incorporated under the laws
of the Republic of Italy ("Pirelli"), and, commencing with Amendment No. 1
thereto, Olimpia S.p.A., a company incorporated under the laws of the Republic
of Italy (the "Purchaser"), with respect to the ordinary shares, euro 0.55 par
value per share, of Telecom Italia S.p.A., a company incorporated under the laws
of the Republic of Italy. Capitalized terms used in this Amendment without
definition have the meanings ascribed to them in the Statement on Schedule 13D.
Pirelli, the Purchaser, Edizione Holding, UCI and BCI are
members of a group with respect to the Telecom Italia Shares. This Amendment
constitutes a separate filing on Schedule 13D by Pirelli and the Purchaser in
accordance with Rule 13d-1(k)(2) under the Securities Exchange Act of 1934.
Pirelli and the Purchaser are responsible solely for the information contained
in their separate filing, except that information contained in the Statement on
Schedule 13D concerning any director or officer of the Purchaser nominated by
Edizione Holding, UCI or BCI has been provided by the nominating person.
Item 2. Identity and Background
-----------------------
On May 9, 2002, each of Mr. Gilberto Benetton and Mr. Massimo
Moratti was elected to the Board of Directors of Pirelli. On November 5, 2001,
Mr. Francesco Gori was appointed General Manager, Tyres Sector of Pirelli (and
Mr. Giovanni Ferrario, who was reported in Amendment No. 6 to the Statement on
Schedule 13D to have held that position, was appointed General Manager of
Pirelli). In addition, on September 10, 2001, Mr. Claudio De Conto was appointed
General Manager, Administration and Control of Pirelli. The business address,
citizenship, present principal occupation or employment (and name, principal
business and address of any corporation or organization at which such employment
is conducted) of each of Messrs. Benetton, Moratti, Gori and De Conto are set
forth on Schedule 1.
During the past five years, to the knowledge of the Purchaser
and Pirelli, none of Messrs. Benetton, Moratti, Gori and De Conto has been (i)
convicted in any criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction as a result of which such person
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activity subject to, federal or state
securities laws or finding any violation with respect to such laws.
Item 5. Interest in Securities of the Issuer
------------------------------------
(a)-(b) The information set forth below has been provided to the Purchaser and
Pirelli by the relevant individuals:
4
Dr. Lino Benassi, a director of the Purchaser, is the
beneficial owner of 1,450 Telecom Italia Shares, representing less than 0.1% of
the total number of securities of that class. Dr. Benassi has sole power to
vote, direct the voting of, dispose of and direct the disposition of all such
Telecom Italia Shares.
Mr. Carlo De Benedetti, a director of Pirelli, beneficially
owns 2,000,400 Warrants on Olivetti ex Tecnost ordinary shares 1999-2004 (the
"Tecnost Warrants"). The Tecnost Warrants are exercisable for Olivetti Shares at
any time until June 20, 1994 at an exchange ratio of 25 Tecnost Warrants for 28
Olivetti Shares. The exercise price per Olivetti Share is euro 2.8 (increasing
at a rate of 15% per annum from August 20, 1999). If all such Tecnost Warrants
are exercised, Mr. De Benedetti would beneficially own an aggregate of 2,240,045
Olivetti Shares, representing less than 0.1% of the total number of securities
of that class. Mr. De Benedetti has shared power to dispose of all such Tecnost
Warrants with Romed S.p.A., a company controlled by Mr. De Benedetti.
Mr. Claudio De Conto, an executive officer of Pirelli, is the
beneficial owner of 1,100 Telecom Italia Shares, representing less than 0.1% of
the total number of securities of that class. Mr. De Conto has sole power to
vote and dispose of all such Telecom Italia Shares.
Dr. Alberto Pirelli, a director of each of the Purchaser,
Pirelli and Pirelli & C., is the beneficial owner of 550 Telecom Italia Shares,
representing less than 0.1% of the total number of securities of that class. Dr.
Pirelli has sole power to vote and dispose of all such Telecom Italia Shares.
(c) Information as to transactions in Olivetti Shares or
Telecom Italia Shares by directors or executive officers of Pirelli,
Pirelli-Lux, Pirelli & C. and the Purchaser is set forth on Schedule 2.
Item 6. Contracts, Arrangements, Understandings or Relationships
with Respect to Securities of the Issuer
----------------------------------------
Information as to certain put, call and securities loan
arrangements of companies controlled by Mr. Carlo De Benedetti, a director of
Pirelli, with respect to the securities of Telecom Italia and Olivetti is set
forth on Schedule 3.
5
SIGNATURE
---------
After reasonable inquiry and to the best knowledge and belief
of the undersigned, the undersigned certifies that the information set forth in
this statement is true, complete and correct.
Date: August 1, 2002
PIRELLI S.p.A.
By: /s/ Anna Chiara Svelto
------------------------------------
Name: Anna Chiara Svelto
Title: Attorney-in-fact
OLIMPIA S.p.A.
By: /s/ Luciano Gobbi
------------------------------------
Name: Luciano Gobbi
Title: Director and Attorney-in-fact
6
SCHEDULE I
Additional Directors And Executive Officers of Pirelli S.p.A.
-------------------------------------------------------------
The business address of each person listed below is c/o Pirelli S.p.A., Viale
Sarca 222, 20126 Milan, Italy.
------------------------------------- -------------------- -------------------------- --------------------------------
POSITIONS WITH PRESENT PRINCIPAL OCCUPATION
NAME CITIZENSHIP PIRELLI S.p.A.
------------------------------------- -------------------- -------------------------- --------------------------------
Gilberto Benetton Italian Director Chairman, Edizione Holding
S.p.A. (the parent of one of
the other shareholders of the
Purchaser); Chairman, Ragione
S.a.p.a. di Gilberto Benetton
e C.; Deputy Chairman,
Olivetti; and Deputy Chairman,
Telecom Italia.
------------------------------------- -------------------- -------------------------- --------------------------------
Massimo Moratti Italian Director Entrepeneur
------------------------------------- -------------------- -------------------------- --------------------------------
Francesco Gori Italian General Manager, Tyres General Manager, Tyres Sector,
Sector Pirelli S.p.A.
------------------------------------- -------------------- -------------------------- --------------------------------
Claudio De Conto Italian General Manager, General Manager,
Administration and Administration and Control,
Control Pirelli S.p.A.
-----------------------------------------------------------------------------------------------------------------------
7
SCHEDULE II
The following table describes, to the knowledge of the Purchaser and Pirelli,
all transactions in Olivetti Shares and Telecom Italia Shares that were effected
by each of the directors and executive officers of the Purchaser, Pirelli,
Pirelli-Lux and Pirelli & C. since the date 60 days prior to the date on which
the Initial Statement on Schedule 13D was filed (or any later date on which such
director or executive officer first became such with respect to the Purchaser,
Pirelli, Pirelli-Lux or Pirelli & C., as applicable). The information concerning
such transactions has been provided by the relevant individuals.
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Name Transaction Security Number of Price Per Where and How Transaction
Date Securities Security1 Effected
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Giovanni Ferrario 6/26/01 Olivetti Shares 42,000 1.93 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/27/01 Olivetti Shares 24,250 1.98 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/10/01 Olivetti Shares 56,500 2.17 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/30/01 Olivetti Shares 42,250 2.04 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/31/01 Olivetti Shares 16,000 2.00 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
8/30/01 Olivetti Shares 64,500 1.74 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Alberto Pirelli 10/25/01 Olivetti Shares 15,750 1.28 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
10/25/01 Telecom Italia 1,000 9.20 Italian Stock Exchange
Shares (purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
11/15/01 Olivetti Shares 15,750 1.13 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
11/15/01 Telecom Italia 1,000 8.97 Italian Stock Exchange
Shares (sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
----------------
1 Prices are denominated in Euros, and exclude commissions and fees.
8
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Name Transaction Security Number of Price Per Where and How Transaction
Date Securities Security1 Effected
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
11/20/01 Telecom Italia 550 9.74 Italian Stock Exchange
Shares (purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Carlo De Benedetti* 6/27/01 Telecom Italia 150,000 9.99 Italian Stock Exchange
Shares (purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/27/01 Telecom Italia 150,000 9.50 Italian Stock Exchange
Shares (sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
12/05/01 Olivetti Shares 500,000 1.37 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
12/13/01 Olivetti Shares 21,848 1.24 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
12/21/01 Olivetti Shares 592,250 1.41 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
12/27/02 Olivetti Shares 109 1.42 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
1/03/02 Olivetti Shares 41 1.44 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
1/18/02 Olivetti Shares 1,070,552 1.24 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
1/30/02 Telecom Italia 150,000 9.25 Italian Stock Exchange
Shares (purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
1/30/02 Telecom Italia 150,000 9.25 Italian Stock Exchange
Shares (sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
2/27/02 Telecom Italia 150,000 9.26 Italian Stock Exchange
Shares (purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
2/27/02 Telecom Italia 150,000 9.26 Italian Stock Exchange
Shares (sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
3/19/02 Tecnost Warrants 2,000,400 0.19 Private sale to Romed SpA
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
----------
* The following transactions were effected by Romed International S.A., a
company controlled by Mr. De Benedetti.
9
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Name Transaction Security Number of Price Per Where and How Transaction
Date Securities Security1 Effected
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
3/27/02 Telecom Italia 150,000 9.70 Italian Stock Exchange
Shares (purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
3/27/02 Telecom Italia 150,000 9.70 Italian Stock Exchange
Shares (sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
4/29/02 Telecom Italia 150,000 8.80 Italian Stock Exchange
Shares (purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
4/29/02 Telecom Italia 150,000 8.31 Italian Stock Exchange
Shares (sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Carlo De Benedetti** 3/19/02 Tecnost Warrants 2,000,400 0.19 Private purchase from Romed
International SpA
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Carlo De Benedetti*** 6/15/01 Olivetti Shares 100,000 2.01 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/25/01 Olivetti Shares 750,000 1.92 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/26/01 Olivetti Shares 250,000 1.91 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/27/01 Olivetti Shares 500,000 2.00 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/28/01 Olivetti Shares 500,000 2.04 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/29/01 Olivetti Shares 250,000 2.11 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/2/01 Olivetti Shares 1,000,000 2.18 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
----------
** This transaction was effected by Romed S.p.A., a company controlled by Mr. De
Benedetti.
*** The following transactions were effected by Compagnia Finanziara De
Benedetti S.p.A., a company controlled by Mr. De Benedetti.
10
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Name Transaction Security Number of Price Per Where and How Transaction
Date Securities Security1 Effected
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/3/01 Olivetti Shares 750,000 2.25 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/27/01 Olivetti Shares 500,000 2.30 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/30/01 Olivetti Shares 2,000,000 2.01 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/31/01 Olivetti Shares 500,000 2.00 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/31/01 Olivetti Shares 500,000 1.90 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Carlo De Benedetti**** 6/07/01 Olivetti Shares 120,000 2.10 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/15/01 Olivetti Shares 1,620,000 2.02 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/25/01 Olivetti Shares 1,750,000 1.92 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/26/01 Olivetti Shares 500,000 1.91 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/27/01 Olivetti Shares 750,000 2.00 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/27/01 Olivetti Shares 4,000,000 2.00 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/28/01 Olivetti Shares 1,500,000 2.02 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/28/01 Olivetti Shares 1,500,000 2.04 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
6/29/01 Olivetti Shares 500,000 2.11 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
----------
**** The following transactions were effected by Compagnie Industriale Riunite
S.p.A., a company controlled by Mr. De Benedetti.
11
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
Name Transaction Security Number of Price Per Where and How Transaction
Date Securities Security1 Effected
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/02/01 Olivetti Shares 2,500,000 2.15 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/02/01 Olivetti Shares 2,000,000 2.18 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/03/01 Olivetti Shares 1,000,000 2.21 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/03/01 Olivetti Shares 1,000,000 2.20 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/25/01 Olivetti Shares 9,000,000 2.20 Italian Stock Exchange
(purchase)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
7/27/01 Olivetti Shares 1,000,000 2.30 Italian Stock Exchange
(sale)
------------------------ --------------- ----------------- --------------- ------------- -----------------------------
12
SCHEDULE III
The following table sets forth information provided to the Purchaser and Pirelli
by Mr. Carlo De Benedetti, a director of Pirelli, concerning put, call and
securities loan arrangements with respect to the securities of Telecom Italia
and Olivetti that were entered into since the date 60 days prior to the date on
which the Initial Statement on Schedule 13D was filed. Each of the transactions
described was effected over the Italian Stock Exchange; accordingly, the
identity of the counterparty is not known. All prices are denominated in Euros
and exclude any applicable commissions and fees.
(a) The following transactions were effected by Romed International S.A., a
company controlled by Mr. De Benedetti:
-----------------------------------------------------------------------------------------------------------
Olivetti Shares
-----------------------------------------------------------------------------------------------------------
Transaction Date Nature of Transaction Option Number of Exercise/Maturity Price
Exercise Price Underlying Date
Securities
-----------------------------------------------------------------------------------------------------------
6/01/01 Put Option 2 2,000,000 7/20/01 0.08145
(Purchase)
-----------------------------------------------------------------------------------------------------------
6/01/01 Call Option 2.2 500,000 7/20/01 0.07665
(Sale)
-----------------------------------------------------------------------------------------------------------
6/01/01 Call Option 2.1 1,000,000 7/20/01 0.1225
(Sale)
-----------------------------------------------------------------------------------------------------------
6/05/01 Put Option 2 750,000 7/20/01 0.07333
(Purchase)
-----------------------------------------------------------------------------------------------------------
6/08/01 Put Option 2 1,000,000 9/21/01 0.13
(Purchase)
-----------------------------------------------------------------------------------------------------------
6/08/01 Call Option 2.2 1,000,000 9/21/01 0.13
(Sale)
-----------------------------------------------------------------------------------------------------------
6/25/01 Put Option 1.85 500,000 9/21/01 0.116
(Purchase)
-----------------------------------------------------------------------------------------------------------
6/25/01 Call Option 2 500,000 9/21/01 0.134
(Sale)
-----------------------------------------------------------------------------------------------------------
6/26/01 Call Option 2 250,000 9/21/01 0.14
(Sale)
-----------------------------------------------------------------------------------------------------------
6/26/01 Put Option 1.85 250,000 9/21/01 0.11
(Purchase)
-----------------------------------------------------------------------------------------------------------
7/13/01 Call Option 2.3 500,000 9/21/01 0.1131
(Sale)
-----------------------------------------------------------------------------------------------------------
7/17/01 Call Option 2.3 250,000 9/21/01 0.112
(Sale)
-----------------------------------------------------------------------------------------------------------
7/19/01 Call Option 2.3 1,000,000 9/21/01 0.10125
(Sale)
-----------------------------------------------------------------------------------------------------------
7/26/01 Call Option 2.4 100,000 9/21/01 0.103
(Sale)
-----------------------------------------------------------------------------------------------------------
13
-----------------------------------------------------------------------------------------------------------
Olivetti Shares
-----------------------------------------------------------------------------------------------------------
Transaction Date Nature of Transaction Option Number of Exercise/Maturity Price
Exercise Price Underlying Date
Securities
-----------------------------------------------------------------------------------------------------------
7/26/01 Call Option 2.4 400,000 9/21/01 0.1
(Sale)
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Telecom Italia Shares
-----------------------------------------------------------------------------------------------------------
Transaction Date Nature of Transaction Option Number of Exercise/Maturity Price
Exercise Price Underlying Date
Securities
-----------------------------------------------------------------------------------------------------------
6/27/01 Securities Loan 150,000 7/31/01 9.99
(Loan)
-----------------------------------------------------------------------------------------------------------
6/27/01 Securities Loan 150,000 6/28/01 9.99
(Borrowing)
-----------------------------------------------------------------------------------------------------------
7/25/01 Securities Loan 150,000 7/31/01 10.37
(Loan)
-----------------------------------------------------------------------------------------------------------
7/25/01 Securities Loan 150,000 8/31/01 10.37
(Borrowing)
-----------------------------------------------------------------------------------------------------------
(b) The following transactions were effected by Compagnia Finanziara De
Benedetti S.p.A., a company controlled by Mr. De Benedetti:
-----------------------------------------------------------------------------------------------------------
Olivetti Shares
-----------------------------------------------------------------------------------------------------------
Transaction Date Nature of Transaction Option Number of Exercise/Maturity Price
Exercise Price Underlying Date
Securities
-----------------------------------------------------------------------------------------------------------
6/07/01 Call Option 2.2 500,000 9/21/01 0.13
(Sale)
-----------------------------------------------------------------------------------------------------------
6/07/01 Put Option 2 500,000 9/21/01 0.13
(Purchase)
-----------------------------------------------------------------------------------------------------------
6/07/01 Put Option 2 1,000,000 9/21/01 0.13
(Purchase)
-----------------------------------------------------------------------------------------------------------
6/07/01 Call Option 2.2 1,000,000 9/21/01 0.13
(Sale)
-----------------------------------------------------------------------------------------------------------
6/15/01 Call Option 2.1 1,000,000 8/17/01 0.075
(Sale)
-----------------------------------------------------------------------------------------------------------
6/15/01 Put Option 2.1 1,000,000 8/17/01 0.16
(Purchase)
-----------------------------------------------------------------------------------------------------------
6/27/01 Securities Loan 2,000,000 6/28/01 2
(Loan)
-----------------------------------------------------------------------------------------------------------
6/27/01 Securities Loan 2,000,000 7/31/01 2
(Borrowing)
-----------------------------------------------------------------------------------------------------------
14
-----------------------------------------------------------------------------------------------------------
Olivetti Shares
-----------------------------------------------------------------------------------------------------------
Transaction Date Nature of Transaction Option Number of Exercise/Maturity Price
Exercise Price Underlying Date
Securities
-----------------------------------------------------------------------------------------------------------
6/28/01 Securities Loan 500,000 7/3/01 2.02
(Borrowing)
-----------------------------------------------------------------------------------------------------------
6/28/01 Securities Loan 500,000 7/31/01 2.02
(Loan)
-----------------------------------------------------------------------------------------------------------
7/02/01 Securities Loan 1,250,000 7/4/01 2.15
(Borrowing)
-----------------------------------------------------------------------------------------------------------
7/02/01 Securities Loan 1,250,000 7/31/01 2.15
(Loan)
-----------------------------------------------------------------------------------------------------------
7/03/01 Securities Loan 750,000 7/6/01 2.2
(Borrowing)
-----------------------------------------------------------------------------------------------------------
7/03/01 Securities Loan 750,000 7/31/01 2.2
(Loan)
-----------------------------------------------------------------------------------------------------------
7/04/01 Call Option 2.2 1,000,000 8/17/01 0.1
(Sale)
-----------------------------------------------------------------------------------------------------------
7/04/01 Put Option 2.2 1,000,000 8/17/01 0.11
(Purchase)
-----------------------------------------------------------------------------------------------------------
7/25/01 Securities Loan 4,500,000 7/31/01 2.2
(Borrowing)
-----------------------------------------------------------------------------------------------------------
7/25/01 Securities Loan 4,500,000 8/31/01 2.2
(Loan)
-----------------------------------------------------------------------------------------------------------
7/25/01 Call Option 2.3 500,000 10/19/01 0.11
(Sale)
-----------------------------------------------------------------------------------------------------------
7/25/01 Put Option 2.3 500,000 10/19/01 0.19
(Purchase)
-----------------------------------------------------------------------------------------------------------
7/31/01 Securities Loan 2,000,000 8/31/01 2
(Loan)
-----------------------------------------------------------------------------------------------------------
7/31/01 Securities Loan 2,000,000 8/2/01 2
(Borrowing)
-----------------------------------------------------------------------------------------------------------
7/31/01 Securities Loan 500,000 8/1/01 2
(Loan)
-----------------------------------------------------------------------------------------------------------
7/31/01 Securities Loan 500,000 8/31/01 2
(Borrowing)
-----------------------------------------------------------------------------------------------------------
7/31/01 Securities Loan 500,000 8/31/01 2
(Loan)
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Telecom Italia Savings Shares
-----------------------------------------------------------------------------------------------------------
Transaction Date Nature of Transaction Option Number of Exercise/Maturity Price
Exercise Price Underlying Date
Securities
-----------------------------------------------------------------------------------------------------------
7/19/01 Call Option 5.6 750,000 9/21/01 0.28
(Sale)
-----------------------------------------------------------------------------------------------------------
15
-----------------------------------------------------------------------------------------------------------
Telecom Italia Savings Shares
-----------------------------------------------------------------------------------------------------------
Transaction Date Nature of Transaction Option Number of Exercise/Maturity Price
Exercise Price Underlying Date
Securities
-----------------------------------------------------------------------------------------------------------
7/19/01 Put Option 5.6 750,000 9/21/01 0.235
(Sale)
-----------------------------------------------------------------------------------------------------------
3/13/02 Put Option 5.8 1,000,000 6/02 0.28
(Sale)
-----------------------------------------------------------------------------------------------------------
3/28/02 Call Option 6.2 500,000 6/02 0.24
(Sale)
-----------------------------------------------------------------------------------------------------------
3/28/02 Put Option 6.2 500,000 6/02 0.38
(Sale)
-----------------------------------------------------------------------------------------------------------
4/25/02 Call Option 5.8 500,000 6/02 0.26
(Sale)
-----------------------------------------------------------------------------------------------------------
4/25/02 Put Option 5.6 500,000 6/02 0.23
(Sale)
-----------------------------------------------------------------------------------------------------------
5/09/02 Call Option 5.8 500,000 6/02 0.26
(Sale)
-----------------------------------------------------------------------------------------------------------
5/09/02 Put Option 5.8 500,000 6/02 0.34
(Sale)
-----------------------------------------------------------------------------------------------------------
5/09/02 Call Option 6.0 500,000 6/02 0.44
(Sale)
-----------------------------------------------------------------------------------------------------------
5/09/02 Put Option 6.0 500,000 6/02 0.11
(Sale)
-----------------------------------------------------------------------------------------------------------
5/16/02 Put Option 5.9 500,000 6/02 0.40
(Purchase)
-----------------------------------------------------------------------------------------------------------
5/16/02 Call Option 5.9 500,000 6/02 0.10
(Sale)
-----------------------------------------------------------------------------------------------------------
(c) The following transactions were effected by Compagnie Industriale
Riunite S.p.A., a company controlled by Mr. De Benedetti:
-----------------------------------------------------------------------------------------------------------
Olivetti Shares
-----------------------------------------------------------------------------------------------------------
Transaction Date Nature of Transaction Option Number of Exercise/Maturity Price
Exercise Price Underlying Date
Securities
-----------------------------------------------------------------------------------------------------------
6/08/01 Call Option 2.2 500,000 9/21/01 0.13
(Sale)
-----------------------------------------------------------------------------------------------------------
6/08/01 Put Option 2 500,000 9/21/01 0.13
(Purchase)
-----------------------------------------------------------------------------------------------------------
6/08/01 Call Option 2.2 1,000,000 9/21/01 0.13
(Sale)
-----------------------------------------------------------------------------------------------------------
6/08/01 Put Option 2 1,000,000 9/21/01 0.13
(Purchase)
-----------------------------------------------------------------------------------------------------------
6/15/01 Call Option 2.1 2,000,000 8/17/01 0.075
(Sale)
-----------------------------------------------------------------------------------------------------------
16
-----------------------------------------------------------------------------------------------------------
Olivetti Shares
-----------------------------------------------------------------------------------------------------------
Transaction Date Nature of Transaction Option Number of Exercise/Maturity Price
Exercise Price Underlying Date
Securities
-----------------------------------------------------------------------------------------------------------
6/15/01 Put Option 2.1 2,000,000 8/17/01 0.16
(Sale)
-----------------------------------------------------------------------------------------------------------
6/27/01 Securities Loan 2 4,000,000 7/31/01
(Loan)
-----------------------------------------------------------------------------------------------------------
6/28/01 Securities Loan 2.02 1,500,000 7/31/01
(Loan)
-----------------------------------------------------------------------------------------------------------
7/2/01 Securities Loan 2.15 2,500,000 7/31/01
(Loan)
-----------------------------------------------------------------------------------------------------------
7/3/01 Securities Loan 2.2 1,000,000 7/31/01
(Loan)
-----------------------------------------------------------------------------------------------------------
7/4/01 Put Option 2.2 2,000,000 8/17/01 0.11
(Sale)
-----------------------------------------------------------------------------------------------------------
7/4/01 Call Option 2.2 2,000,000 8/17/01 0.10
(Sale)
-----------------------------------------------------------------------------------------------------------
7/25/01 Securities Loan 2.2 9,000,000 8/31/01
(Loan)
-----------------------------------------------------------------------------------------------------------
7/25/01 Call Option 2.4 1,000,000 10/19/01 0.11
(Sale)
-----------------------------------------------------------------------------------------------------------
7/25/01 Put Option 2.2 1,000,000 10/19/01 0.19
(Sale)
-----------------------------------------------------------------------------------------------------------
17