Telefónica not buying into Telecom

7 Mar 2007

Telefónica of Spain has ended negotiations to buy a minority stake in its Italian counterpart Telecom Italia. The Spanish firm was considering acquiring part of Pirelli’s stake in Olimpia, a holding company which has an 18% interest in Telecom Italia. The Financial Times says the talks have been halted, however, with Telefónica claiming that the potential financial benefits were not strong enough. Telecom Italia’s board may now consider the possibility of forming an international alliance with the Spanish telco, with synergies from such a venture estimated to be worth up to EUR2 billion.

Italy, Telecom Italia (TIM), Telefonica