Equity swap gives J.P. Morgan 7% of Telecom Italia – JPMorgan Chase & Co. (NYSE:JPM) | Seeking Alpha

An Italian regulatory filing shows that J.P. Morgan (JPM -0.9%) has a 7% stake in Telecom Italia (TI -0.9%) — the result, for now, of an equity swap deal with Telefonica (TEF +0.4%).

The Spanish provider issued a €750M exchangeable bond, maturing in 2017, that converts into TI shares, and did a totl return equity swap with J.P. Morgan giving it the TI stake.

Telefonica will reclaim the shares from the bank, though, at maturity, and give them to the bond's investors.

via seekingalpha.com