Just few months after when Italian government blocked a Spanish company to acquire the largest toll road company in Italy, Italian infrastructure minister, Antonio Di Pierto, has clarified that the Italian government would not block Spanish acquisition of a huge stake in Telecom Italia. Italy’s decision to block foreign acquisition of Autostrade has shocked the European market and eyebrows were increasingly raised over liberalization process of Italian economy.
The parent company of Olimpia, Pirelli, which controls Telecom Italia has revealed that it is in talks with Telefonica of Spain over buying a significant stake in the telecom firm. Earlier, clouds of uncertainty had started hovering over the acquisition of stakes in the Italian telecom firm following the decision to block Spanish firm from acquiring stakes in Italy.
Di Pierto has clarified that Italian government would not impose any limits on the ownership of the telephone company by any Italian or foreign company. But he hinted that any foreign company just cannot come to Italy and start buying stakes in Italian company as it also concern industrial plan, proposed investment and trust of the investors.
Financial experts are of the view that despite the fact that Di Pierto’s comments might have enthused significant enthusiasm in Telefonioca and other foreign forms to make acquisition in Italy, but foreign firms will not have a free hand over acquiring companies that are considered strategic to Italy’s interest.
Romano Prodi, former president of the European Commission, despite pushing intensive measures to liberalize the Italian economy, he allowed Di Pietro to create hurdles to the Abertis acquisition of Autostrade. It has dented his ambition to project himself as a pro-European liberalizer.
