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European Commission Clears Joint Control of Omnitel Pronto Italia

Strategic Insights

— 1 min read

The European Commission has given its approval to a plan by German and US telecommunications firms Mannesmann AG and Bell Atlantic Corp. to take joint control of Italian mobile phone operator Omnitel Pronto Italia SpA. This follows Olivetti's successful bid to take over Italian telecom operator Telecom Italia, where it won control of almost 52% of the company. As part of its bid, Olivetti has agreed to sell its stakes in Omnitel and fixed-line phone company Infostrada SpA to Mannesmann.

Key Takeaways:

  • The European Commission cleared plans by Mannesmann AG and Bell Atlantic Corp. to take joint control of Italian mobile phone operator Omnitel Pronto Italia SpA on May 25.
  • The deal will be sealed when Italy's Olivetti sells its stake in Omnitel to Mannesmann as part of its bid to take over Telecom Italia, increasing Mannesmann's holding from 28.3% to 55% in Omnitel.
  • The combined market share of the Omnitel partners will not exceed 15% in any sector, considering that any coordination between the parent companies would be insignificant.
  • Olivetti won control of almost 52% of Telecom Italia, beating out a proposed merger between the Italian former telecom monopoly and Germany's Deutsche Telekom.
  • Mannesmann has confirmed it would buy Olivetti's stakes in Omnitel, which would give the company 100% ownership of Infostrada SpA.
  • The European Commission approved Olivetti's takeover plan in April, noting that the Italian group's plans to sell its telecom interests to Mannesmann removed concerns about the impact on competition.

Statistics:

  • 15%: The combined market share of the Omnitel partners will not exceed this percentage in any sector.
  • 52%: Olivetti's share ownership in Telecom Italia after its successful bid.
  • 28.3%: Mannesmann's initial holding in Omnitel.
  • 55%: Mannesmann's holding in Omnitel after the acquisition of Olivetti's stake.
  • 49.9%: Mannesmann's initial holding in Infostrada SpA.
  • 100%: Mannesmann's holding in Infostrada SpA after the acquisition of Olivetti's stake.
  • April: The European Commission approved Olivetti's takeover plan.
  • May 25: The European Commission cleared plans by Mannesmann AG and Bell Atlantic Corp. to take joint control of Omnitel.

Sources:

  • "European Commission Clears Plan to Joint Control of Omnitel Pronto Italia". May 25.
  • "Olivetti Wins Control of Telecom Italia". April.

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