Sources suggest that Telefonica is keen to raise TI stake

11 Sep 2013

Spanish telecoms group Telefonica is said to be considering raising its stake in Telecom Italia (TI) amid an expected overhaul of the Italian group’s ownership structure, the Wall Street Journal reports, citing people familiar with the matter. Telefonica, which owns 46% of holding company Telco, which itself holds a 22.39% stake in TI, has begun talks with other shareholders about how to shuffle the ownership of TI. While there has been speculation as to whether Telefonica could pursue a full-blown merger with TI, two people familiar with the situation said that option is highly unlikely. However, another viable option is for the Spanish telecoms giant to progressively buy the other stakes over a number of years, although the parties are still quite far from reaching any such agreement.

Italy, Telecom Italia (TIM), Telefonica