AT&T passes on Telecom Italia investment for now

AT&T Inc. has dropped negotiations to acquire a one-third stake in a holding company, Olimpia S.p.A., which controls about 18 percent of Telecom Italia’s ordinary shares.
AT&T said in a press release that it “appreciated the opportunity to explore a possible investment in Olimpia and a strategic partnership with Telecom Italia, but has decided not to pursue the matter further.”
Olimpia holds only Telecom Italia assets, and AT&T was negotiating with Pirelli & Co. S.p.A, which owns 80 percent of Olimpia. When AT&T first announced its interest, it noted that the investment in Olimpia was contingent upon a similar one-third stake investment in the holding company by America Movil.
Telecom Italia reported 31.5 million mobile lines and 24.3 million fixed network connection in Italy, and 24.1 million mobile lines in Brazil in its most recent quarterly filings.