AT&T confirmed that it is negotiating to acquire an indirect investment in Telecom Italia S.p.A. A deal would provide AT&T with a strategic European partner serving 24 million landline, 57.9 million mobile and 8.6 million broadband connections, including broadband interests in the Netherlands, France and Germany, and wireless in Brazil.
AT&T is considering the purchase of a one-third stake in Olimpia S.p.A., a holding company with approximately 18 percent of Telecom Italia’s ordinary shares, subject to satisfactory completion of AT&T’s due diligence, agreement on other terms of the transaction, and satisfaction of other conditions. As part of these negotiations, America Movil, S.A.B. de C.V. (AMX) also is considering an investment for one-third of the shares of Olimpia. AT&T’s investment is contingent on America Movil’s investment.
AT&T is in negotiations on the potential investment to acquire the interest from Pirelli & C S.p.A., which owns 80 percent of Olimpia. Olimpia holds only Telecom Italia assets.
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