Telefonica looking to acquire 66 pct of Olimpia for 4.8 bln eur - report UPDATE |
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Thu, 19 Apr 2007 09:22
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(updates with report of full Telefonica bid for TI, AT&T comments)MADRID (Thomson Financial) - Telefonica SA is planning an offer of some 4.8 bln eur for 66 pct of Olimpia, a holding company that controls 18 pct of Telecom Italia SpA, El Economista reported, citing unnamed sources.Pirelli & C SpA is currently seeking to sell down its 80 pct stake in Olimpia, and the deal would value Telecom Italia about 3 eur per share, it said.The offer will include a condition that Telefonica will not interfere in Telecom Italia SpA management.A partnership with Telecom Italia will help Telefonica assure that the Italian peer does not sell its assets in Argentina and Brazil to Mexican magnate Carlos Slim, the newspaper noted.Telefonica would likely pay for the deal with the 3.0 bln eur from the sale of its Airwave affiliate, it added.The Italian daily Il Sole 24 Ore added that Telefonica is also studying the possibility of a full bid for Telecom Italia, but the operation would be extremely costly.Telecom Italia's common shares capitalise at about 31.5 bln eur at current market prices and savings shares at around 12.0 bln.The Italian newspaper also cited AT&T Inc COO Randall Stephenson as saying that the US telecommunications company could consider buying a stake in Telecom Italia if political pressure to prevent from doing so disappears.AT&T was in talks to buy a 33 pct stake in Olimpia from Pirelli but pulled out of the talks earlier this week.tfn.europemadrid@thomson.comccs/ped/amb/pw/ambCOPYRIGHTCopyright AFX News Limited 2007. 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.
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Telefonica declines comment on report of possible offer for Telecom Italia 