Telecom Italia, Telefonica Executives to Meet Monday - Sources

MILAN -(Dow Jones)- Executives of Spanish telecommunications giant Telefonica are going to meet with Telecom Italia top managers as well as some of its shareholders Monday and Tuesday, people familiar with the situation said Monday.

People with knowledge of the situation said Monday that in the last months Telefonica has offered to buy stakes from some Telecom Italia shareholders in order to gain a majority stake in the Italian telecoms company.

"The offers were always rebuffed," the same people said.

"Meetings between shareholders and managers are held regularly," one person said.

Telecom Italia is currently controlled by Telco, a holding company owned by Telefonica, Italian banks Mediobanca and Intesa Sanpaolo, insurer Generali and the Benetton family.

Telefonica Chairman Cesar Alierta is also going to meet representatives of the Italian government Tuesday, another person familiar with the situation said.

In the last twelve months shares of Telecom Italia have lost 50% of their value, underperforming both the Italian S&PMib index as well as European peers.

Telefonica has said its stake in Telecom Italia is a long-term industrial alliance.

-By Sabrina Cohen, Jason Sinclair and Giada Zampano, Dow Jones Newswires, +39 02 5821 9906; abrina.cohen@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 8th September 2008