Telecom Italia denies Telefonica rumours

Telecom Italia (TI) has denied reports by local newspaper a Corriere della Sera that it held meetings with shareholders to discuss a potential merger with Telefonica, the fifth largest telecoms operator in the world by revenues. The newspaper reported that TI was proposing a plan under which Telefonica would control the group’s Spanish and South American operations, while TI would control other European and North African operations. TI reportedly discussed the proposed merger with Intesa Sanpaolo and Mediobanca: each company holds a 10.6% stake in Telco, the investor group that controls TI with a 24.5% shareholding. TI refuted the rumours saying, ‘No plan of a merger between Telecom Italia and Telefonica exists.’ Telefonica currently holds a 42.3% stake in Telco and has been considering takeover bids for TI subsidiaries HanseNet and ETECSA.