MILAN, Italy-Telecom Italia and parent Olivetti announced a plan to merge, in an attempt to simplify the group’s complicated ownership. Olivetti will offer seven shares for each Telecom Italia share.
Olivetti holds 55 percent of Telecom Italia, which owns wireless subsidiary Telecom Italia Mobile, with holdings in Europe and Latin America.
Marco Tronchett Provera took control of Telecom Italia in July 2001 when he and other investors bought 29 percent of Olivetti. Former Telecom Italia Chairman Roberto Colaninno was ousted in 2001 after investors blocked his plan to reduce the Olivetti and Telecom Italia debt.
A merged group would have debt of about $42 billion.
