Telefonica eyeing 12-14 pct stake in Pirelli unit Olimpia - report |
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Sun, 18 Feb 2007 17:02
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MILAN (AFX) - Telefonica SA is planning to acquire some 12-14 pct Pirelli SpA's 80 pct stake in Olimpia, the company that owns 18 pct of Telecom Italia SpA, daily Corriere della Sera reported Saturday citing sources close to the Spanish group.According to the daily, Telefonica's move is more defensive than offensive and is aimed at preventing rivals, namely Deutsche Telekom AG or France Telecom, from gaining a foot-hold in Italy.However, Telefonica is concerned about Olimpia's 3 bln eur net debt as well as Telecom Italia's 40 bln eur debt, given that the Spanish company has almost 52 bln eur debt which will limit its options.The daily said that once Telefonica has a foot in the door the company sees development opportunities in other markets, especially Brazil.yael.schrage@thomson.comysc/wjCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Pirelli confirms talks with Telefonica, others for Telecom Italia stake 