MADRID, Sept 8 (Reuters) - Telefonica has not changed its relationship with Telecom Italia and has invested in its Italian peer for the long term, a spokeswoman for the Spanish telecommunications operator said on Monday.
'Our relationship with Telecom Italia has not changed,' she said. 'We have an industrial alliance and we want to achieve synergies with our partner. It is a long-term investment.'
Before the arrival of Telefonica Chairman Cesar Alierta in Italy for a series of meetings, La Repubblica reported on Saturday he was frustrated with the way Telecom Italia was being restructured.
Without identifying its sources, the newspaper said he wanted Telefonica to take control of Telecom Italia or sell its stake to the other shareholders in a pact that controls the Italian operator.
Alierta is expected to meet Telecom Italia executives in Milan as well as government officials in Rome.
The idea of a takeover by Telefonica has been promoted by the Fossati family, the second biggest investor in Telecom Italia.
But Marco Fossati was quoted by La Repubblica on Sunday as saying the conditions were not right for such an operation.
At a business conference over the weekend, he told reporters that he had recently presented to Telecom Italia's executives the details of his family's strategy for the operator, which he said were well received.
Telefonica and the other members of the pact including Intesa Sanpaolo and Assicurazioni Generali have said their stake has lost more than 5 billion euros in value since they agreed to buy it in April 2007.
The share price first fell because of a lack of clarity over management and then over concern about the operator's future strategy.
At 1145 GMT, it was up 1.74 percent at 1.055 euros.
Telecom Italia Chief Executive Franco Bernabe is following a conservative plan to cut debt and make cost savings. He is to review the plan at the end of the year.
(Reporting by Robert Hetz; Writing by Gilles Castonguay in Milan; Editing by Quentin Bryar) Keywords: TELECOMITALIA TELEFONICA/ tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
'Our relationship with Telecom Italia has not changed,' she said. 'We have an industrial alliance and we want to achieve synergies with our partner. It is a long-term investment.'
Before the arrival of Telefonica Chairman Cesar Alierta in Italy for a series of meetings, La Repubblica reported on Saturday he was frustrated with the way Telecom Italia was being restructured.
Without identifying its sources, the newspaper said he wanted Telefonica to take control of Telecom Italia or sell its stake to the other shareholders in a pact that controls the Italian operator.
Alierta is expected to meet Telecom Italia executives in Milan as well as government officials in Rome.
The idea of a takeover by Telefonica has been promoted by the Fossati family, the second biggest investor in Telecom Italia.
But Marco Fossati was quoted by La Repubblica on Sunday as saying the conditions were not right for such an operation.
At a business conference over the weekend, he told reporters that he had recently presented to Telecom Italia's executives the details of his family's strategy for the operator, which he said were well received.
Telefonica and the other members of the pact including Intesa Sanpaolo and Assicurazioni Generali have said their stake has lost more than 5 billion euros in value since they agreed to buy it in April 2007.
The share price first fell because of a lack of clarity over management and then over concern about the operator's future strategy.
At 1145 GMT, it was up 1.74 percent at 1.055 euros.
Telecom Italia Chief Executive Franco Bernabe is following a conservative plan to cut debt and make cost savings. He is to review the plan at the end of the year.
(Reporting by Robert Hetz; Writing by Gilles Castonguay in Milan; Editing by Quentin Bryar) Keywords: TELECOMITALIA TELEFONICA/ tf.TFN-Europe_newsdesk@thomson.com ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
