Spain's Telefonica eyes share of Telecom Italia

0 Comments | AFP, February, 2007

MILAN (AFP) — Spanish telecoms giant Telefonica has said that it was in talks to acquire a minority share in Telecom Italia, but the deal faces political resistance in Rome.

Telefonica announced "preliminary contacts" with Italian tyre manufacturer Pirelli for a minority interest in the Olimpia holding company, which has a controlling stake in Telecom Italia with 18 percent of its capital.

Olimpia is 80-percent owned by Pirelli and 20 percent by the Benetton family.

The Spanish press reported that Telefonica is seeking to acquire about 30 percent of Olimpia, which would give it control of some 5.4 percent of Telecom Italia.

But Pirelli CEO Marco Tronchetti Provera sought to ally concern that the move would jeopardise the national character of Italy's...