E.Biscom: Merger With Wind Is "Valid Idea"; Denies Talks"

ROME -(Dow Jones)- The chairman of Italian broadband operator e.Biscom SpA (EBI.MI) said Wednesday a merger with telecommunications operator Wind SpA (WIF.YY) would make economic sense, but he repeated the two companies aren't in talks.

Silvio Scaglia, who is also e.Biscom's biggest shareholder, said "a combination of the industrial assets of Wind and e.Biscom remains a valid idea."

A tie-up would create Italy's second-biggest, fixed-line operator behind Telecom Italia SpA (TI), he said.

Wind is fully-owned by power company Enel SpA (EN), which considers its telecom unit as a non-strategic asset and wants to float it.

Enel Chief Executive, Paolo Scaroni, has said in the past he would consider ditching plans to list Wind if a buyer puts enough money on the table.

Sources familiar with the matter have said Enel has examined a deal with e.Biscom and, separately, an alternative plan to sell to France Telecom SA (FTE).

The three companies have denied they held talks.

-By Vittorio Alessio, Dow Jones Newswires; +39 06 678 2543; vittorio.alessio@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 1st December 2004