Telecom Italia Chairman: No Merger Plans With Telefonica

MILAN -(Dow Jones)- Telecom Italia Chairman Marco Tronchetti Provera Wednesday denied media reports that had said Telecom Italia and Spanish firm Telefonica could be planning a merger.

"We have no plans with Telefonica," Tronchetti said when asked about frequent media reports that consolidation between the two firms was being planned.

Tronchetti was speaking at a news conference as part of a day-long presentation to its investors.

Tronchetti also said Telecom Italia has no plans to launch mobile-telecom operations in France and Germany, markets where it operates in the area of broadband services.

Tronchetti also denied market speculation about a possible merger between Olimpia SpA, which is Telecom Italia's largest shareholder with a 18% stake, and tire maker Pirelli & C. SpA, which controls 57.7% of the unlisted holding company Olimpia. Tronchetti is also Pirelli's chairman.

The latter transaction would be a further cut of the group control's chain after last year, when Telecom Italia bought control of its mobile unit's minority interests for EUR14 billion.

Asked about the EUR1 billion buyback plan announced Wednesday, Tronchetti specified it relates to saving shares as much as ordinary shares. The decision to exercise the buyback will depend on market conditions, he said.

-By Serena Saitto, Dow Jones Newswires; +39 3483678361, serena.saitto@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 8th March 2006