US/Mexican interest in Telecom Italia

AT&T Inc of the US and América Móvil of Mexico are reportedly in negotiations with Pirelli to take over 60% of its stake in Olimpia, the largest single shareholder in Telecom Italia with an 18% interest. Dow Jones reports that the deal is worth around EUR2.7 billion. The Italian communications minister Paolo Gentiloni responded to the news by saying that he is ‘deeply worried’ by the development, with the government known to be keen to retain the local ownership of Telecom Italia. Pirelli had earlier been in negotiations with Telefónica of Spain but talks came to nothing.