France Telecom, Telefonica mull T. Italia bid-WSJ
LONDON, April 4 (Reuters) - France Telecom (FTE.PA) and Spain's Telefonica (TEF.MC) are each considering counter-offers for the holding company Olimpia that controls Telecom Italia (TLIT.MI), the Wall Street Journal reported on Wednesday, citing unnamed sources close to the matter.
Olimpia's majority shareholder Pirelli & Co (PECI.MI). was approached earlier in the week by U.S. phone giant AT&T (T.N) and Mexico's America Movil (AMXL.MX) to buy a combined 66 percent stake for about 4.5 billion euros ($6.01 billion), according to Reuters calculations.
Olimpia owns 18 percent of Telecom Italia, the former state-run telecoms operator that some government officials would prefer to keep in local hands.
The Wall Street Journal also reported in its online edition that France Telecom and Telefonica are each talking to Italian banks and insurance companies about teaming up to form a group that could be more agreeable to the government.
Telefonica and France Telecom declined to comment on the report.
((Reporting by Jeffrey Goldfarb; Editing by David Cowell; Reuters Messaging: jeffrey.goldfarb.reuters.com@reuters.net, tel: +44 207 542 8793, email: jeffrey.goldfarb@reuters.com))
($1=.7493 Euro) Keywords: TELECOMITALIA BID/FTE TEF Keywords: TELECOMITALIA BID/FTE TEF =2
(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nL04574353
