AT&T Withdraws From Talks to Acquire Stake in Telecom Italia

12:30 am on April 17, 2007 | Category: Business, Corporate

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America’s largest telecom provider, AT&T, announced yesterday that it was dropping out of negotiations to buy a stake in the Olimpia holding company, which in turn has a controlling interest in Telecom Italia.

As the Italian telephone provider’s shareholders met to elect a new board of directors, AT&T announced that it had decided “not to pursue the matter further.” The U.S. company’s Mexican affiliate, America Movil, however, which was party to the deal, says that it will continue to consider “different alternatives for a potential investment in Olimpia.”

One of Olimpia’s current owners, the investment firm, Pirelli & C SpA, confirmed that AT&T’s withdrawal was motivated by the possibility of regulatory disputes with Italy’s left-leaning coalition government.

Pirelli responded to AT&T’s withdrawal announcement by reiterating its “intention to explore all possible options for the best strategic valuation of the asset in the interest of all the shareholders.”

With AT&T out of the picture, Spain’s leading telecom provider, Telefonica, is expected to enter buyout negotiations with Olimpia’s current shareholders.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock