Generali Not Interested In Buying Majority Stake In Olimpia

MILAN -(Dow Jones)- Italy's largest insurer by assets Assicurazioni Generali, Tuesday said it is not interested in buying a majority stake in unlisted holding company Olimpia SpA, which controls 18% of Telecom Italia.

In a statement issued upon request of Italian market regulator Consob, Generali also said it isn't trying to form a group of investors bidding for an Olimpia stake as of now.

In a separate statement, Italian merchant bank Mediobanca confirmed it is in preliminary talks with some potential investors for the possible purchase of a majority stake in Olimpia.

"Any indication can be given at present over the possible outcome of these contacts," Mediobanca said, adding that the market will be informed of possible future developments.

Intesa Sanpaolo, Italy's biggest lender by number of branches, also said earlier on Tuesday it was in touch with more than one party interested in buying a stake in Olimpia.

U.S. phone giant AT&T and its Mexican partner America Movil are negotiating with main shareholder Pirelli to buy one-third of Olimpia apiece.

But there has been increasing pressure on Italian banks from the center-left government to find a way to preserve Italian control over Telecom Italia, or at least over its fixed-line network, which is viewed as a strategic asset.

Italy's main financial institutions, including Intesa Sanpaolo and Mediobanca, could team up and seek control of the former telecoms monopoly, without ruling out a possible agreement with the two foreign bidders.

Under the terms of the exclusive talks with AT&T and America Movil, Pirelli can't examine any competing offers for Olimpia until the end of this month. After that deadline, Mediobanca and Generali have two weeks to match the twin offers.

Mediobanca and Generali have a pact with Olimpia, under which the holding company must consult the pair before making decisions regarding a sale of its 18% stake in Telecom.

In a separate statement, Italy's third-largest bank by market capitalization, Capitalia, said it isn't involved in any talk with investor groups interested in acquiring a stake in Telecom Italia or Olimpia.

"Capitalia is not currently negotiating with the participants of the aforementioned groups or with the selling shareholder," it said.

-By Giada Zampano, Dow Jones Newswires; +39 02 5821 9907; giada.zampano@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 10th April 2007