Telefónica in Telecom Italia stake talks

12 Feb 2007

Telefónica of Spain is discussing with Telecom Italia’s largest shareholders the buying of a stake in Italy’s dominant telecoms operator in a deal which could be valued at EUR3 billion (USD3.9 billion), writes the Financial Times. The Spanish group is the latest to express an interest in acquiring part of Telecom Italia from Pirelli, the tyres and real estate company which is seeking to diversify its financial interests.

Pirelli owns 80% of Olimpia, a holding company whose only asset is 18% of Telecom Italia. People close to the negotiations said that Telefónica was considering taking up to 30% of Olimpia, which would translate into control of 5.4% of Telecom Italia.

Italy, Spain, Telecom Italia (TIM), Telefonica