Olivetti finally secures Telecom Italia takeover

NEWS Olivetti's E60.4bn hostile bid for Telecom Italia ended in success on Friday as it secured the 50 per cent stake it needed to claim ownership of the Italian telecoms giant. The move spells the end for the proposed merger between Telecom Italia and German operator, Deutsche Telekom (DT). Friday was the last day for Telecom Italia shareholders to tender their support for Olivetti's bid, and at 8:00pm news came through that 51.02 per cent of shares had been acquired by the Italian technology company. Franco Bernabe, CEO of Telecom Italia, who has fought Olivetti's bid from the outset, issued a statement saying that he had acted with his conscience "always in the interests of the company". Giulia Rancati, research manager for analyst company, IDC, said the takeover was allowed to go through because the Italian government was keen to keep the ex-national telephone operator in Italian hands. However both Telecom Italia and DT will still be keen to find other international partners. "Deutsche Telekom is lining up possible targets," Rancati claimed, "and may buy Britain's Cable & Wireless."