Italian Banks may Buy Pirelli’s Telecom Italia Share

A consortium of Italian banks and financial institutions are reportedly considering the purchase of Pirelli & C SpA’s stake in Telecom Italia SpA at 2.8-2.9 euro per share. The price is an increase from a previous offer of 2.6 euro per share and close to Pirelli’s request of 3.0 euro per share, and the deal may include an adjustment mechanism that would further benefit Pirelli.

However the Italian newspaper Il Sole 24 Ore has stated that Unicredito Italiano SpA does not want to take part in the consortium, which could complicate arrangement of any agreement. It added that Banca Monte dei Paschi di Siena SpA is also cautious about a deal and cited Capitalia SpA’s chairman Cesare Geronzi as saying that time is needed to find a solution.