Intesa Sanpaolo May Consider Taking Stake In Tel Italia-CEO

MILAN -(Dow Jones)- Intesa Sanpaolo may consider taking a stake in Telecom Italia if it is satisfied that it would be a good investment for the bank and its shareholders, the bank's Chief Executive Corrado Passera said Monday at an analysts presentation.

"We might consider a shareholding participation if this looks like a good idea for us and our shareholders," Passera said when asked about the possibility of acquiring a stake in the company which is Italy's largest telecoms operator by market share.

Passera also said that in the past the bank made investments on a "temporary basis" adding there was no reason not to repeat such an investment with an "interesting company" as Telecom Italia.

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

-By Sabrina Cohen, Dow Jones Newswires; +39 347 3563 463; sabrina.cohen@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 16th April 2007