New law could affect Telecom Italia acquisition

Italy's Communications Minister Paolo Gentiloni announced that the government will introduce a new law that will enable the Italian telecom regulatory body, AGCOM, to impose changes in fixed telephony regulation. Currently telecoms can reject such proposals from AGCOM. AT&T and America Movil have announced a plan to acquire a stake in Pirelli, which has a stake in Telecom Italia, but the Italian government would like the telecom--especially its fixed line assets--to remain in Italian control. However, the minister did not go as far to say the law would prevent a deal between Pirelli and its suitors. America Movil has also said publicly that should it acquire control over the stake in TI, it has no intention of breaking up the company or letting the Italian managers and workers go.

For more on the imminent Italian law:
- see this report from WirelessWeek