Pirelli ups TI interest

5 Oct 2006

Italy’s Pirelli group has increased its indirect stake in Telecom Italia by paying EUR1.17 billion for two 4.77% stakes in holding company Olimpia. The stakes were acquired from Banca Intesa and UniCredit under previous option agreements. The deals take Pirelli’s interest in Olimpia to 80%; Edizione Holding, which is controlled by the Benetton family, has the remaining 20%. Olimpia holds 18% of Telecom Italia’s shares. Dow Jones reports that Pirelli may now come under pressure to consolidate Olimpia.

Italy, Telecom Italia (TIM)