PRESS: Sistema Owner Confirms Talks on Telecom Italia Stake Buy

MOSCOW, Jan 30 (Prime-Tass) -- Major Russian multi-industry holding AFK Sistema is in talks to acquire a stake in Italian telecommunications operator Telecom Italia, Vladimir Yevtushenkov, Sistema's chairman and controlling shareholder said, Vedomosti business daily reported Tuesday.

Yevtushenkov confirmed Reuters news agency reports that Sistema was holding negotiations with Pirelli Group to buy its stake in Telecom Italia, Vedomosti reported.

A spokesperson with Sistema said that the holding was taking part in "a dozen" similar meetings with other foreign operators, the daily reported.

Pirelli owns 80% in a company called Olimpia, whose only asset is a 17.99% stake in Telecom Italia.

As of September 30, 2006, Telecom Italia was the leading fixed-line and mobile provider in Italy, with 24 million fixed-line numbers, or 72.8% of the country's total, and 31.5 million mobile users, or 40.3% of the country's total.

Telecom Italia also owns several TV channels, as well as electronics producer Olivetti.

About 81% in Telecom Italia is owned by Italian and foreign investors.

AFK Sistema, established in 1993, owns and manages assets in telecommunications and several other business sectors, including electronics, insurance, real estate, oil and oil products, trade, securities, mass media, tourism and health services.

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Posted to the site on 30th January 2007