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Europe

Is Italian on Telefónica's Menu?

8:50 AM -- Are we about to witness the first major European incumbent merger?

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

Garci 12/5/2012 | 4:43:20 PM
re: Is Italian on Telefónica's Menu?

At leat in one country -mine, that is, Argentina- this merger or so has been creating headaches for Telecom for over a year. Since the initial purchase gave Telefonica a controlling stake in Telecom, the state has been trying to force Telecom to sell its local operations. Now this has been stuck in the justice system for a while, but in short, the government wants either to take the company over and turn it into a state-run operation or have some "friends" make a bid for a much lower value than what the company is really worth...


i'll like to see how this evolves!

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