TI : a hot topic

We already knew that Pirelli wants to sell its 80% stake in Olimpia, the holding controlling Telecom Italia, eventually loosing about half of its purchasing cost. But news are accelerating this week with a lot of declared or not bidders. First it was announced that Telefonica was interested, then was throwing the towel. Early this week, ATT and America Movil should be in negotiations with Pirelli to take over Olimpia and control TI. The consortium has offered a premium of 32% worth about $7.5bn for a 12% interest in TI, so the offer is positively considered by Pirelli that granted the consortium of exclusive talks until April 30. As a result, the Italian government is "deeply worried" about the news and is said to organize defense, pushing Italian banks to go ahead. The situation complicated when TI chairman Rossi, in resistance to Pirelli strategy, was said to be ousted short term, and with two or three new counteroffers from respectively Telefonica, FT and DT (with Italian banks). To be continued....