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Italia, Telekom outline plans
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May 6, 1999: 10:38 a.m. ET
Telecom bosses promise to push through tie-up, in one form or another
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LONDON (CNNfn) - Deutsche Telekom and Telecom Italia embarked Thursday on their latest roadshow to win over the hearts, minds and wallets of investors.
Speaking to analysts and investors in Milan, the telecom giants said they would pursue their partnership by other means, if the proposed $82 billion merger fails to go through.
Italia Managing Director Franco Bernabe said the combined group would look for a partner in the United States, but had yet to find a suitable candidate.
He also said that despite the formation of the, as yet unnamed, new group both Deutsche Telekom and TI would retain separate listings in Milan and Frankfurt.
Telekom Chief Executive Ron Sommer later clarified that the new company would be listed on the Milan, Frankfurt, New York and Tokyo stock exchanges. The two men propose to share the top job at the enlarged group, rotating on an annual basis.
The executives gave further detail on their proposed merger, which is a riposte to a takeover offer for TI from smaller Italian rival Olivetti.
The groups said their tie-up would generate combined benefits of $1.3 billion by 2002 and $1.7 billion by 2003.
Other projects mooted by the two executives included a possible flotation of T-online, Telekom's Internet access service. The unit currently has 3 million subscribers.
-- from staff and wire reports
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