T.Italia CEO: Cash-Financed Acquisitions Not in Sight for Now

MILAN -(Dow Jones)- Telecom Italia's new chief executive, Franco Bernabe, said Friday the group is not able to finance acquisitions with cash for now, but could consider share-swap based deals if interesting opportunities arise.

Bernabe confirmed the Italian operator is evaluating a sale of its French broadband unit Alice France, while reiterating that its media unit Telecom Italia Media is not for sale for now.

Bernabe said Telecom Italia wouldn't be allowed to buy the Italian activities of smaller peer Tiscali, which recently didn't rule out a possible sale.

Asked whether Telecom Italia could itself be a takeover target, following a steep fall in its shares' value, Bernabe said the Italian operator is a public company and "its shareholders will have to evaluate offers if they come in."

Telecom Italia's CEO smashed recent speculation of a possible merger with Italy's largest private broadcaster Mediaset, saying that being a media company is not on his group's agenda.

Asked about future investments in the next generation network - crucial for delivering value-added and high-speed services - Bernabe said Telecom Italia is open to sharing them with other telecoms operators.

-By Giada Zampano, Dow Jones Newswires; 39 347 7678016; giada.zampano@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 7th March 2008