[More DT]
This news was perhaps lost in the Vocal Tec commotion. The point being---DT is making noise.
Deutsche Telekom Remains Elusive on Italian Job
By Vanessa Fuhrmans and Robert Cox at Bloomberg News
28-AUG-97
Deutsche Telekom AG's chief executive today confirmed the carrier's interest in the Italian market, while refusing to confirm or deny specific talks with Olivetti Spa.
ÿÿÿÿÿÿ "We have a lot of interest in the Italian market," said Telekom chief executive Ron Sommer, speaking at the IFA media fair in Berlin. "But there's nothing to say about Olivetti at this point."
ÿÿÿÿÿÿ Olivetti shares have surged as much as 18% in the past two weeks amid speculation that Telekom is in talks to acquire a stake in the Italian office-products company to gain control of its telephone businesses.
ÿÿÿÿÿÿ Telekom is believed to be considering a stake of up to 30% in Olivetti to gain control of its Omnitel-Pronto Italia, Italy's second cellular operator.
ÿÿÿÿÿÿ Asked if the company is in talks with Olivetti, Sommer would only say: "We have various teams in Italy conducting various talks."
ÿÿÿÿÿÿ However, optimism of a buy-out had faded by today's close as shares slid by 5.5%, after gaining for four consecutive days.
ÿÿÿÿÿÿ "People are now deciding that perhaps the stock is not worth as much as they pushed it up,'' said Franco Aletti, an analyst at Aletti & Co. Sim. "People are trying to put a value on its telecoms business without the rest."
ÿÿÿÿÿÿ Reports first appeared in German business daily Handelsblatt saying Telekom was interested in taking a stake in Olivetti's Infostrada SpA, which aims to become Italy's second-largest fixed-line operator when the industry is opened to competition next year.
ÿÿÿÿÿÿ However, France Telecom, a partner with Deutsche Telekom through their Global One joint venture, could be a more likely suitor. In April, Olivetti reached preliminary agreement with France Telecom that it should be allowed to take a 49% stake via a L165bn ($90 million) new share issue.
ÿÿÿÿÿÿ But first Olivetti must convince Bell Atlantic its 33% partner in Infostrada, to allow France Telecom to join. The US company has so far refused to ratify the agreement.
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