Is Italian on Telefónica's Menu?
Reuters reports that the Italian government might not block a takeover of Telecom Italia (TIM) by Telefónica SA (NYSE: TEF), which already owns a controlling stake in the Italian national operator. (See Telefónica Takes Stake in Telecom Italia.)
Such a combination would be a real powerhouse in Southern Europe and Latin America, but be a nightmare to manage and integrate. Clearly, though, the banking and analyst community won't care too much about the aftermath, as the near-term gains for them would run into tens of millions of euros, so expect to see many justifications for a merger from those who would stand to pocket big bonuses.
— Ray Le Maistre, International News Editor, Light Reading