"No," and "no." That's what Telecom Italia Chairman Gabriele Galateri had to say about rumors Italy's largest phone company was issuing new shares and considering a merger with Telefonica. "There are no projects to merge with Telefonica, and there are no projects for a capital hike," he said in a speech for the firm's annual shareholder meeting.
TI's been hurt by competition (what telco hasn't) and has seen its share price plummet 41 percent in the past 12 months as its earnings for 2007 gassed 19 percent compared to a year earlier. At least one major investor--whose family owns a 4.5 percent stake-has been campaigning for TI to push Internet and wireless sales harder, then look at a Telefonica deal.
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