AT&T eyes Telecom Italia stake

AT&T Inc. is trying to negotiate an indirect investment in Telecom Italia S.p.A. by working out a one-third stake in a holding company that owns about 18 percent of the Italian company’s ordinary shares.
The investment in the holding company, Olimpia S.p.A., is contingent upon a similar one-third stake investment in the holding company by America Movil. According to AT&T, the value of the stakes in Olimpia would be based on a price per Telecom Italia share equal to $3.77, minus the net debt of Olimpia when the transaction closes.
Olimpia holds only Telecom Italia assets, and AT&T is negotiating with Pirelli & Co. S.p.A, which owns 80 percent of Olimpia.
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.