Spain's Telefonica eyes bid for Telecom Italia

0 Comments | AFP, April, 2007

MILAN (AFP) — Spanish telecoms giant Telefonica might make a counter-bid for Olimpia, the holding company that owns 18 percent of Telecom Italia.

The tire group Pirelli, which set up Olimpia with the apparel maker Benetton, is currently in exclusive takeover talks with American giant ATT and its Mexican affiliate America Movil.

The Italian newspaper the Corriere della Sera reported Thursday that Telefonica was in contact with the Italian banks Intesa Sanpaolo and Mediobanca to finalise an offer of at least 3.0 euros (4.0 dollars) a share in Olimpia.

ATT and America Movil are offering 2.82 euros a share for 66 percent of Olimpia.

Intesa Sanpaolo and Mediobanca on Tuesday acknowledged receiving "contacts" with potential investors in Telecom Italia, but...