Telecoms technology and software developer Italtel, the main equipment supplier for Telecom Italia, says it will launch an initial public offering (IPO) in the first half of 2006. Italtel says all of its shareholders are agreed on the IPO, which will see majority investor Clayton, Dubilier and Rice significantly reduce its 48.77% holding. Other investors, including Telecom Italia and Cisco Systems, are expected to retain their stakes. Italtel succeeded in reducing its borrowings from EUR500 million in 2000 to EUR275 million at the end of 2004, but still reported a EUR30.67 million loss for last year. It claims that its costs are under control and that it expects its overseas revenues to grow by more than 50% in 2005. Earlier this year it was reported that Siemens was looking to boost its own telecoms revenues and had expressed an interest in taking control of the company. The German vendor later confirmed that it has had contact with Italtel but stressed that it currently has no concrete plans for acquiring a stake.