Leading up to Italian service provider Tiscali's annual meeting on April 29, there is increasing speculation that Italy's incumbent telco, Telecom Italia, could launch a bid to acquire its rival, or at least part of it. The Italian newspaper Borsa and Finanza reported that Telecom Italia could make an acquisition bid before the meeting, without naming sources for that information. The speculation is nothing new: last month, it was reported that several companies, including Telecom Italia and Vodafone, could be in the running to buy Tiscali. Also, there have been reports that Telecom Italia could use income from the planned sale of its France-based broadband firm Alice to help pay for Tiscali.
However, the deal rumors also came shortly after Telecom Italia's CEO told investors that the company is in the midst of a difficult period, and they should not expect any "fireworks."
- read this Thomson Financial story at Forbes
- Telecom Italia CEO Bernabe cautioned investors about their expectations