3rd UPDATE: Telefonica Stock In Telco Is A Problem - Italy Government
September 29 2009 - 11:08AM
Dow Jones News
Telefonica SA's (TEF) 42.3% stake in the Telco holding company
which controls Telecom Italia SpA (TI) is a problem which needs to
be resolved and the Italian government is watching it closely, a
top government official said Tuesday.
In comments confirmed by his spokesman, Italy's undersecretary
for telecommunications, Paolo Romani, said Telecom Italia's
fixed-line network is a strategic asset which must remain in
Italian hands, expressing Rome's opposition to any foreign control
of the key infrastructure.
Speculation concerning Telecom Italia's shareholding structure
has heated up in recent months, as an October deadline to renew or
dissolve Telco's pact approaches.
"Telefonica's 40% stake in Telco is a significant problem that
needs to be solved. It's up to the company [to address it] but the
government is monitoring closely," Romani said during a
parliamentary hearing.
However, later Tuesday Romani said Telecom Italia is a private
company with its own rules and the government can't take a stance
on its shareholding structure.
Romani also denied press reports that he took a recent trip to
China to find new investors in order to replace Telefonica's
presence in Telco.
Telco, Telecom Italia's largest shareholder with a 24.5% stake,
is owned by Spanish phone giant Telefonica, Italian banks Intesa
Sanpaolo (ISP.MI) and Mediobanca SpA (MB.MI), insurer Assicurazioni
Generali (G.MI) and the Benetton family.
Telefonica, which holds a 10% indirect stake in the Italian
phone operator through Telco, had no comment on Romani's
remarks.
Press reports in recent months indicated Telecom Italia was
considering a plan to merge with Telefonica, but Telecom Italia has
always denied such a plan.
Telefonica has repeatedly said its stake in Telecom Italia is a
long-term industrial alliance.
By 1430 GMT, Telecom Italia shares were down 0.6% at EUR1.23,
underperforming an overall positive market.
-By Giada Zampano, Dow Jones Newswires; 39 06 69766925;
giada.zampano@dowjones.com