Naguib Sawiris has confirmed his interest in investing in Telecom Italia (TI), but said he may change his mind if Rome would prefer Telefonica to boost its stake in the Italian incumbent.
The Egyptian tycoon said he is considering a “potential…
Naguib Sawiris has confirmed his interest in investing in Telecom Italia (TI), but said he may change his mind if Rome would prefer Telefonica to boost its stake in the Italian incumbent.
The Egyptian tycoon said he is considering a “potential investment” in TI, a spokesperson for the businessman confirmed. But an Italian newspaper reported late last week, without citing sources, that the Italian government would prefer a Telecom Italia/Telefonica merger over an investment from Sawiris.
However, Reuters quoted Italian finance minister Fabrizio Saccomanni as saying the government welcomes foreign investments, adding that he believes companies should make their own decisions about such matters.
Earlier reports stated Sawiris, US incumbent AT&T and Carlos Slim’s Mexico-based telco America Movil (AMX) approached TI shareholders looking to exit their investments.
AMX CFO Carlos Garcia Morena subsequently denied his company has had “any contact” with TI shareholders, while AT&T declined to comment on the matter. Milan-based TI, working to cut debt to €27bn by the end of the year, has also declined to comment on the reports.
Meanwhile, TI CEO Franco Bernabe told reporters at the Ambrosetti economic conference in Cernobbio that the telco could take on a “coalition partner”. He said TI does not need a new financial investor, but rather an “industrial shareholder” for an “an industrial project”.
The TI board is expected to discuss a potential change to the company’s shareholder structure at a meeting on 19 September.
Members of Telco, which owns 22.4% of Telecom Italia, have until 28 September to decide whether or not to request early withdrawal from the shareholding group. Telco’s three Italian shareholders – financial organisations Assicurazioni Generali, Intesa Sanpaolo and Mediobanca – are reportedly open to selling their stakes, but Telefonica, which has the largest holding, is said to want to keep the shareholding structure as it is.
Last year, Sawiris said he was prepared to invest up to €3bn in TI, but this plan was rejected by the company’s board.
