that support has increased to 16 percent for their blockade of a deal proposed by Olivetti and Telecom Italia. They need 20 percent to succeed.

Last week The Royal Gazette reported that the hedge fund is leading a group of fund managers which claimed 14 percent support from non-voting savings shareholders in trying to block a proposed $11.8 billion transaction by the two companies. They need to ensure the support of 20 percent of non-voting savings shareholders to succeed, and on Monday claimed their support has risen to 16 percent.

Liverpool Limited Partnership claims there is a further 5.4 percent also in opposition that cannot, for technical or legal reasons, give a pledge on their votes. If this is the case the fund managers have over and above their necessary 20 percent and should succeed at the shareholders meeting on 18th April.

Last week Gordon Singer, a fund manager for the Bermuda-based fund, said, "We feel very comfortable with what we have (then 14 percent), especially when you consider that there is a natural non-adherence level of about ten percent from people who just don't show up (to the voters meeting ).'' Three weeks ago Telecom Italia and Olivetti put forward their proposal for share conversion and buy-back. The intention was that TI would use money from some conversion of non-voting shares to buy back ten percent of its ordinary shares from Olivetti. TI estimates it can raise $11.8 billion from the share conversion to buy back the ordinary shares.

This plan would free TI to make major acquisitions and alliances and would reduce Olivetti's debts and cut its stake in TI to 44 percent. Fund managers are very unhappy about the suggested price of the shares which is why they are mustering the boycott.

The two companies said they will only proceed with the plan if they can get agreement for 80 percent of non-voting shares to be put up for conversion into ordinary shares. Therefore achieving 20 percent support for their blockade is imperative if the fund managers are to succeed.