The key Telecom Italia shareholders seeking to offload their stakes have reportedly been contacted by US incumbent AT&T, Mexican telecoms giant America Movil (AMX) and Egyptian tycoon Naguib Sawiris.
Communication is at an early stage as the three…
The key Telecom Italia shareholders seeking to offload their stakes have reportedly been contacted by US incumbent AT&T, Mexican telecoms giant America Movil (AMX) and Egyptian tycoon Naguib Sawiris.
Communication is at an early stage as the three potential investors have not formally expressed interest, according to Reuters citing a source with knowledge of the situation.
However, in an interview with the news agency later in the day, AMX CFO Carlos Garcia Morena denied the company is in talks with the shareholders, saying “we have not had any contact”.
Telecom Italia chairman and CEO Franco Bernabe reportedly aims to find a new investor before a board meeting on 19 September.
Also, earlier this week, sources were quoted saying that members of Telco, which owns 22.4% of Telecom Italia, aim to sell their stakes by 28 September.
Telco members – Italian financial organisations Assicurazioni Generali, Intesa Sanpaolo and Mediobanca along with Spanish telco Telefonica – can request early withdrawal from the holding group agreement, which expires in 2015, by the above date.
The three Italian organisations are all open to selling but Telefonica, which owns the largest stake in Telco, reportedly wants to keep the shareholding structure as it is and would take action if its control was threatened.
Today, a Mediobanca spokesperson declined to comment on the new report but pointed to the bank’s strategic plan, which states that Mediobanca is looking to raise €2bn by 2016 from the sale of stakes in assets including Telecom Italia.
Industry experts have speculated that Mediobanca’s plans could fast-track consolidation in the European telecoms sector. Yesterday, Telecom Italia CEO Franco Bernabe told reporters on the sidelines of an event that consolidation in Europe is “necessary” when asked about a possible merger with Telefonica.
Further fuelling consolidation rumours in Italy and wider Europe is UK mobile giant Vodafone’s agreement to sell its 45% stake in US wireless carrier Verizon Wireless to Verizon Communications for US$130bn, giving it plenty of scope for acquisitions.
As part of the deal, Verizon will transfer its 23.1% stake in Vodafone Italy, valued at US$3.5bn, back to Vodafone, meaning the Italian sector is ripe for a shake-up.
AT&T declined to comment on the reports. Telecom Italia and Sawiris were not immediately available for comment.
