“We do have interest in Telecom Italia, but we have not reached any agreement with Pirelli yet,” Sistema’s president Alexander Goncharuk said in an interview with Kommersant.
Photo: Pavel Smertin
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Sistema Makes a Move into Italian Market
Russia’s Sistema may soon become a co-owner of Telecom Italia, Italy’s largest communications company. The deal may be signed in March during the official visit of Russian President Vladimir Putin to Italy, the Mergermarket news agency reported. Sistema has confirmed its interest in Telecom Italia’s shares.
Sistema is set to enter talks with Pirelli Group’s CEO Marko Tronchetti Provera to buy a stake in Telecom Italia, the Mergermarket news agency reported Thursday quoting a unanimous source. Pirelli Group holds 80 percent in the Olimpia financia company which owns 18 percent in Telecom Italia.
“We do have interest in this company [Telecom Italia], but we have not reached any agreement yet,” Sistema’s president Alexander Goncharuk confirmed in an interview with Kommersant Thursday.
Telecom Italia was set up in 1964. As of September 2006, Telecom Italia is the leader of the landline phone market (72.8 percent) and mobile phone market (40.3 percent). The company also owns La7 and MTV Italia TV channels and the Olivetti electronics producer. Pirelli holds 17.99 percent in Telecom Italia, the company’s management has 0.94 percent and Italian and overseas investors control the remaining 81.07. The company reaped ˆ29.9 billion in profits in 2005.
The stake purchase deal may be signed as early as on March 14 when Russian President Vladimir Putin will be meeting Italian Prime Minister Romano Prodi in Rome. The Russian presidential administration would not comment on this information yesterday.
Market watchers note that the purchase of a stake in the well-known foreign company would be in the line of Sistema’s strategy. Analysts say, though, that Sistema can afford buying only a small stake. With Telecom Italia’s capitalization of $60 billion, 14.4 percent in it will cost at least $8.6 billion. However, the Russian communication holding may want to exchange a stake in Telecom Italia for some of its own assets.
www.kommersant.com
All the Article in Russian as of Jan. 19, 2007
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