🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

UPDATE 1-Italy govt says Telefonica's Telco stake a problem

Published 09/29/2009, 08:42 AM
Updated 09/29/2009, 08:45 AM
TLIT
-
TEF
-
MDBI
-

* Telefonica's stake a "significant problem"

* Speculation grows Telefonica may leave Telco group

(Adds details)

ROME, Sept 29 (Reuters) - An Italian official criticised Spanish company Telefonica's large stake in the group controlling Telecom Italia as a "significant problem", showing Italy's growing unease with foreign influence over the company.

The comments by Deputy Communications Minister Paolo Romani come as speculation heats up over whether Telefonica will exit the Telco investor group controlling Telecom Italia, as an October deadline to declare plans to leave the pact nears.

The remarks are also the latest indication of the Italian administration's opposition to any potential merger between the two telecom giants, speculation over which has helped push up Telecom Italia shares in recent months.

"This very important infrastructure (Telecom Italia's network) must remain Italian," Romani told a parliamentary commission on Tuesday.

"Telefonica's 40 percent stake in Telco is a significant problem that must be resolved. It's up to the company, but the government is watching carefully."

La Repubblica newspaper on Tuesday said Romani had travelled to China earlier this month to find investors to substitute Telefonica in Telco, which owns 24.5 percent of the top Italian telecom operator.

With a 42.3 percent stake in Telco, Telefonica is the largest shareholder in Telco, followed by Italian corporate stalwarts Generali, Mediobanca, Intesa Sanpaoloand the Benetton family's Sintonia vehicle. (Reporting by Alberto Sisto; Writing by Deepa Babington, editing by Will Waterman)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.