Intesa Sanpaolo Interested In Operations To Boost T.Italia Growth

MILAN -(Dow Jones)- Italy's largest bank by number of branches, Intesa Sanpaolo, is interested in taking part in any operation aimed at boosting Telecom Italia growth in Italy and Europe, bank Chief Executive Corrado Passera said Saturday.

Passera shrugged off press reports that Intesa Sanpaolo has lost interest in buying part of a Telecom Italia stake held by Olimpia, the unlisted holding controlled by tire-to-telecoms group Pirelli.

"We are evaluating all the options for an operation that should be valid both from an industrial point of view and for our company," Passera said in a press conference, when asked if the talks over a possible buy-out of a stake in Olimpia had stalled.

People familiar with the situation told Dow Jones Newswires last week that Intesa Sanpaolo was looking to buy at least 34% of Olimpia, which controls 18% of Telecom Italia, with the purpose of discussing the future of the company with AT&T and its Mexican partner, America Movil, which are negotiating with Pirelli to each buy one-third of Olimpia.

The position of Italy's centre-left government, which openly said it would like to see the country's leading financial institutions among those controlling Telecom Italia, is playing a key role in the negotiations.

If the tripartite talks pan out, it could mark the beginning of the end of a drawn-out crisis over Telecom Italia. For much of the past year, Pirelli's chairman, Marco Tronchetti Provera, has been sparring with the Italian government over the future strategy of Italy's largest telecoms operator.

When Tronchetti Provera decided to put Pirelli's stake in Olimpia on the market, the government balked, and the surprise arrival of AT&T and America Movil onto the scene only further worried Rome.

Passera reiterated Saturday that Telecom Italia is a crucial company for the country and added his bank has already demonstrated in the past that "it is possible to help companies and do business at the same time."

-By Giada Zampano, Dow Jones Newswires; +39 348 7678016

(END) Dow Jones Newswires"

Posted to the site on 15th April 2007