Telecom Italia SpA's board approved a €400 million ($471 million) stock buyback and a 1-for-10 reverse stock split, marking a significant restructuring of the Italian telecommunications giant's equity profile. The moves come after the company has been selling off assets to streamline operations and reduce debt.

The buyback authorization represents a strategic shift in capital allocation as TIM seeks to return value to shareholders while consolidating its share structure. The reverse split, which will reduce the number of outstanding shares by 90%, aims to boost the stock price and potentially attract institutional investors who may have been deterred by the current low share price.

These corporate actions signal TIM's commitment to financial restructuring following its asset disposal strategy. The combination of share repurchases and reverse split could improve trading liquidity and market perception of the stock. This overhaul arrives as Telecom Italia continues to navigate Italy's competitive telecom landscape while managing its substantial debt burden from past acquisitions and infrastructure investments.