Telecom Italia buys back Olivetti's shares

NEWS Olivetti acquired control of Telecom Italia in a hostile takeover bid in May 1999. The deal left the Italian IT company with a crippling debt burden, estimated at E18.3bn (£11.65bn). If fully subscribed, the deal could cut Telecom Italia's debt by around E5bn (£3.2bn), according to the company. This would cut Olivetti's holding from 55 per cent of ordinary shares to 44 per cent. The move will open the way for Telecom Italia to make a major alliance with another European telecoms operator, strengthening its hand in the consolidating European telecoms market. Deutsche Telecom, which lost out to Olivetti in 1999's takeover battle, has been named as a potential partner.