MILAN, Italy-Olivetti Group and France Telecom Group approved terms of a joint venture agreement whereby France Telecom will gain an equity stake in Infostrada, which currently is owned 67 percent by Olivetti and 33 percent by Bell Atlantic Corp.
The companies want to grow Infostrada, an alternative telephony carrier in Italy, into one of the country’s leading providers of local, wireless local loop, long-distance, international voice and data services in competition with the national carrier.
France Telecom is in line to purchase 49 percent of Infostrada through a reserved equity increase valued at more than $10 billion. The remaining 51 percent will be retained by Olivetti and Bell Atlantic through a newly created holding company, Infoinvestment. Those two companies will hold 67 percent and 33 percent shares, respectively.
The agreement allows for France Telecom’s partners Deutsche Telekom AG and Sprint Corp. to enter the capital of Infostrada.
The business plan foresees a total capital expenditure of more than $1.2 billion during the next five years, dedicated to network development and installation of state-of-the-art infrastructure.
Infostrada will distribute Global One products in Italy as well, noted the companies.
