Pirelli and Telefónica are continuing their negotiations with a view to the Spanish telco acquiring part of Pirelli’s stake in Telecom Italia holding company Olimpia. Dow Jones quotes ‘a person close to the matter’ who said the talks are at a preliminary stage but are ongoing. Representatives of the two firms met in Milan this week to discuss the deal. Pirelli is thought to be looking to sell between 10% and 15% of Olimpia, a company with an 18% stake in Italy’s dominant fixed line and cellular operator. Telefónica is eyeing a minority stake in Telecom Italia as a means of creating stronger ties with a company which is a competitor in markets such as Brazil and Germany.