Telefonica back in the race for TI stake

Spanish incumbent Telefonica SA is reportedly preparing to launch a counter-offer to buy the long fought over 66 per cent stake in Telecom Italia that it lost in a previous bid last year.

According to the daily Corriere della Sera, Telefonica is readying to buy a stake in the holding company, Olimpia. Pirelli controls an 18 pct stake in Telecom Italia through Olimpia.Corriere della Sera said the Spanish giant is speaking with Intesa Sanpaolo SpA and Mediobanca SpA to form a group of investors to buy the Olimpia stake.

Telefonica could make an announcement after the end of April, it said.

AT&T and America Movil are in exclusive talks to buy the 66 per cent stake in Olimpia from Pirelli.