AT&T in Negotiations for Investment in Telecom Italia

AT&T recently stated that it is in negotiations for a potential indirect investment in Telecom Italia S.p.A. The proposal is for AT&T to purchase a one-third stake in Olimpia S.p.A., a holding company with approximately 18 percent of Telecom Italia's ordinary shares, subject to satisfactory completion of AT&T's due diligence, agreement on other terms of the transaction, and satisfaction of other conditions.

As part of these negotiations, America Movil, S.A.B. de C.V. also is considering an investment for one-third of the shares of Olimpia. AT&T's investment is contingent on America Movil's investment. AT&T is in negotiations on the potential investment to acquire the interest from Pirelli & C S.p.A., which owns 80 percent of Olimpia. Olimpia holds only Telecom Italia assets.

As one of the global telecom leaders in wireless, broadband and IP networks with customers in 137 countries, it seems that AT&T is continually reviewing opportunities that will help it serve the company's growing global customer base. AT&T believes its potential investment in Olimpia would provide Telecom Italia with a strategic partner with whom it can share best practices and pursue joint interests.

Telecom Italia is one of Europe's largest and best-run communications service providers with a market capitalization of about euro 40 billion. It has 24 million landline, 57.9 million mobile and 8.6 million broadband connections, including broadband interests in the Netherlands, France and Germany, and wireless in Brazil.