German telco in bid for Olivetti

Deutsche Telekom and Enel in bid for Italian telecoms market.

Olivetti is rumoured to be the target of a takeover bid by Deutsche Telekom and Enel, Italy's state-owned electricity generator. The acquisition would buy the German telco instant presence in the $20bn Italian telecoms market.

According to German reports, Enel would own 51 per cent of the company, with Deutsche Telekom claiming the balance. The two companies already have a relationship, with an agreement to make a joint bid for Italy's third mobile license.

Olivetti has an 18 per cent stake in Italy's second fixed network carrier, Infostrada. It also owns a controlling share of Omnitel Pronto, the country's second cellular provider.

Ownership of Olivetti would give Deutsche Telekom, Europe's biggest telecoms provider, its first significant presence in a non-German market.