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U.S carrier for Italia deal?
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May 3, 1999: 4:51 a.m. ET
Report: Telekom and Italia line up U.S partner for their $82 billion merger
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LONDON (CNNfn) - Two European telecom giants, attempting to forge a $82 billion merger to create the world's largest phone company, refused to comment Monday on a report that they are wooing a U.S. carrier to link with the new group.
Deutsche Telekom and Telecom Italia both declined comment to CNN on The Wall Street Journal's story Monday. The newspaper cited an unnamed source claiming the two were in discussions with a U.S. group to become the third leg in their planned merger.
The two parties are still to decide if the U.S. partner would take a stake in the combined group, according to the source. The Journal mentioned BellSouth Corp. (BLS) and SBC Communications (SBC) as two possible partners.
The two European telecom companies are facing major hurdles in their proposed tie-up, not least from the Italian government. Rome is worried about a lack of firm commitment from the German government about its plans to dispose of its 72 percent stake in Deutsche Telekom.
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