Telecom Italia, Telefonica to generate 1.0-1.5 bln eur in synergies - report |
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Mon, 19 Feb 2007 09:21
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MILAN (AFX) - Business cooperation between Telecom Italia SpA and Telefonica SA is expected to generate a combined 1.0-1.5 bln eur in annual synergies, the daily La Repubblica said without giving a source.The daily added that Pirelli & C SpA, which is negotiating the sale of a minority stake in Telecom Italia to Telefonica, could ask Telecom Italia's management to explore cooperation with the Spanish group.Pirelli owns 80 pct of Olimpia, which in turn owns an 18 pct stake in Telecom Italia giving it influence over the group's management.Il Corriere della Sera said over the weekend that Telefonica is planning to acquire a 12-14 pct stake in Olimpia.La Repubblica however added that a large part of Telecom Italia's board, including chairman Guido Rossi, resent Pirelli's interference.However, the possibility that Telecom Italia and Telefonica could achieve at least 500 mln eur each in annual synergies, may prompt the Spaniards to pay the equivalent of 3.0-3.4 eur per Telecom Italia share for a stake in Olimpia.On Friday, Telecom Italia closed up 2.12 pct at 2.408 eur.philip.webster@thomson.compw/jlcCOPYRIGHTCopyright 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 