Ever since Telefónica bought a large stake in Telecom Italia three years ago, there has been speculation that the Spanish company would launch a takeover bid for the Italian telecoms incumbent. So far it has only been a lot of noise, especially in Italy, with little or no evidence of the Spanish making a big move.
The noise level has been growing once again in Italy – and to some extent in Spain – to the effect that the merger is now imminent. The Italian media seems to be in a state of excitement, especially after the Spanish industry minister last week suggested it was about time the Italian government showed a little reciprocity by allowing Telefónica to combine with Telecom Italia. After all, Italy’s state-controlled electricity utility Enel has acquired Spain’s leading power group Endesa, and prime minister Silvio Berlusconi’s television company, Mediaset, has been expanding in Spain.
To read this report in The Financial Times in full, see: www.ft.com/cms/s/0/418a0f4e-0c62-11df-a941-00144feabdc0.html
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