Will Telecom Italia Change Its Merger Strategy?

Italian incumbent operator Telecom Italia (TI) may adopt a new strategy that involves focusing on sales of overseas assets and on its Italian broadcast division, as the option of merging with Telefónica has been 'frozen', reports Bloomberg, quoting Italian newspaper Corriere della Sera. Although the deal has not been shelved completely, the newspaper cites analysts' views that the company's new strategic plan expected February 25 2010 will involve a 'standalone strategy', which may not include the immediate completion of the proposed merger with Telefónica. While the report is speculative, BMI believes a focus on developing its core markets would be a sensible move for TI.

To read the full article, please sign in or take a free trial.