Gabriele Galateri, the director of Telecom Italia, said the European telecommunications service providers would need to consolidate. These statements were made at the time that Telecom Italia is in the midst of recovering from losses and recuperating from a recent stock slide.
These comments were quoted by reporters from Cernobbio, Italy. There is an air of uncertainty over the role of the controlling shareholders in Telecom Italia moving forward. 22.5% of the Italian telecommunications form is owned by Telefonica SA of Spain with three other financial investors through a holdings company Telco SpA. The partnership in the holdings company is set for review and amongst the matters for discussion is whether the collaboration would continue or end.
When asked if a merger between Telecom Italia and Telefonica would be possible, he said "You're putting many things together, a merger with Telefonica, a merger of equals. The European market needs consolidation. It's definitely a desirable goal. Beyond which, whether it is possible or not possible depends on may factors. We'll see."
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