Italian newspaper Il Messaggero reported that the Italian government would rather have Telecom Italia merge with Telefonica than have Egyptian businessman Naguib Sawiris invest in the company. No reason was given for the preference but the newspaper said the government did not want the idea of Sawiris purchasing a stake in the telecommunications provider. It could be recalled that Sawiris previously offered to buy a stake in Telecom Italia but failed.
Il Messaggero also reported that Chairman Franco Bernabe had informed the Prime Minister of Italy Enrico Letta that Telecom Italia needed to raise EUR 3 billion to EUR 5 billion. The capital infusion was necessary so that rating agencies would not downgrade the firm's credit rating to "junk" status.
A source knowledgeable about the matter told Reuters that Sawiris had made preliminary contact with Telecom Italia's core investors. The investors had earlier been reported to have wanted to unload their shares in the debt-ridden company.
Il Messagero said no other offers were on the table so Telecom Italia was evaluating offers from Spain's Telefonica and Sawiris.
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