AT&T, America Movil in talks to acquire Telecom Italia stakeTelecompaper writes…AT&T is in negotiations for a potential indirect investment in Telecom Italia. The proposal is for AT&T to purchase a one-third stake in Olimpia, 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, Mexican telecommunications operator America Movil 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, which owns 80 percent of Olimpia. The valuation of the stakes in Olimpia which are the object of the possible sale would be based on a price per Telecom Italia share equal to EUR 2.82, minus the net debt of Olimpia on the closing date of the transaction, subject to the satisfaction of the terms of the proposal. An agreement could value Pirelli’s 18 percent stake in TI at nearly EUR 7 billion, a premium of almost a third to its market value.
