The End for Telecom Italia saga

Telefonica will lead a consortium (called Telco Spa) including a majority of Italian institutions (Generali, Mediobanca, Intesa Sanpaolo, Benetton) that will take over Pirelli' s Olimpia for €4.1bn, and get a 23.6% stake in TI. Telefonica will have a 42% share in the consortium, giving it about a 10% stake in TI and two board seats, for €2.4bn. It will not be able to control TI anyway. Generali will own 28%; Mediobanca and Intesa Sanpaolo about 11% each; Benetton a little more than 8%. But the saga continues in fact in Brazil. The local regulator has already warned Telefonica that, with this deal, Telefonica will have to choose between Vivo and TIM Brazil (a company is prohibited to hold equity in more than one cellular licensee).