Featured Articles

Intel takes credit for three-way 4K gaming

Intel takes credit for three-way 4K gaming

All of a sudden Intel is talking about desktop gaming like there is no tomorrow and it is pushing it. The…

More...
Nvidia Shield Tablet 32GB 4G LTE out for pre orders

Nvidia Shield Tablet 32GB 4G LTE out for pre orders

Nvidia has finally revealed the shipping date of its Shield Tablet 32GB in 4G LTE flavour and in case you pre-order…

More...
Apple announces its Apple Watch

Apple announces its Apple Watch

Apple has finally unveiled its eagerly awaited smartwatch and surprisingly it has dropped the "i" from the brand, calling it simply…

More...
Skylake 14nm announced

Skylake 14nm announced

Kirk B. Skaugen, Senior Vice President General Manager, PC Client Group has showcased Skylake, Intel’s second generation 14nm architecture.

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 25 September 2013 10:01

Spanish buy troubled Italian phone company

Written by Nick Farrell



What could go wrong

Spanish telecoms group Telefonica has announced that it has struck a deal to gradually secure control of Telecom Italia.

The multi-part 860 million euro ($1.2 billion) cash and shares deal will allow Telefonica to raise its stake in debt laden Telco. It will have 22 percent of Telecom Italia, allowing Telco's other investors, Intesa Sanpaolo, Generali and Mediobanca to eventually bow out.

Telefonica has a few debts of its own, it owes $67.5 billion and wants to have influence over what happens to Telecom Italia and its prized Brazilian mobile unit Tim Participacoes. The deal has yet to receive the approval of Brazilian regulators, who could force Telecom Italia to sell TIM Participacoes if Telefonica acquires full ownership of Telco. Telecom Italia itself owes $39.1 billion and is seeing ever shrinking margins. It has attracted interest from Egyptian tycoon Naguib Sawiris and Hong Kong-based Hutchison Whampoa. AT &T was also interested.

Telecom Italia needs capital to cut its debt, but is likely to face scrutiny over a prospective break-up of Italy's biggest telecoms group as well as possible lay-offs. The Italian government is considering a plan to sell the company's fixed-line network, Italy's most sensitive telecoms infrastructure, to a state-backed fund so that the country can get a half-way decent broadband.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments