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T Italia revamps Net plans
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February 11, 2000: 5:24 a.m. ET
Telecom Italia plans to merge Tin.it with Seat, prompting stock surge
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LONDON (CNNfn) - Telecom Italia (TI) announced plans to merge its Internet business with Italy's leading Net portal, sparking a sharp rise in TI's stock price Friday.
Italy's dominant telecom player has revamped its Net strategy and plans to launch a bid for Seat Pagine Gialle, the phone listings publisher in which it already has a stake. TI will combine Seat with its own Tin.it Internet access provider.
Seat shares were suspended in Milan Friday after rising a theoretical 88 percent to 8.01 euros. TI stock advanced 7 percent to a year-high of 19.92 euros.
TI had planned to float Tin.it separately this June, in line with the listing plans of other European telecom giants such as Deutsche Telecom (FDTE) and Swisscom. Spain's Telefonica spun off its Internet arm terra Networks last year and has seen the stock soar.
TI plans to boost its stake in Seat from 11 percent to 29.9 percent ahead of a full bid, with Tin.it injected into the company and assuming Seat's existing listing in Milan.
Tin.it alone is valued by analysts at between 10 and 15 billion euros ($9.8-$14.8 billion).
Italy has lagged behind other western European markets in terms of Net penetration, with just 14 percent of households having Web access last year, according to consultant IDC. However, the success of free access provider Tiscali - which floated last year and has seen its shares rocket - has accelerated demand, with penetration forecast to hit 50 percent by 2003.
Tiscali shares climbed more than 6 percent in Milan Friday, while Olivetti, which last year secured control of TI after a hostile takeover battle, rose 7 percent. 
-- from staff and wire reports
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