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Investor urges Telefonica takeover of Telecom Italia


21.07.2008

The head of a company that owns 4.5 percent of Telecom Italia wants Spain`s Telefonica to acquire the company, according to report in Italian newspaper La Repubblica. The story does not provide a source for this information, and suggests such a deal also is unlikely to happen. However, it is worth noting that Telefonica within the last year became Telecom Italia`s largest shareholder, with 10 percent ownership of the carrier through an investment Telefonica and three banks made in Telecom Italia`s holding company.

Telecom Italia officials have said before that they are not interested in pursuing such a deal. Meanwhile, Telecom Italia`s stock value has been down about 42 percent this year as the company has looked to restructure and recover from difficult times.

 

 

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