The Telecom Italia saga continues

More fallout from former Telecom Italia Chairman Marco Tronchetti Provera's recent reorganization plan. Roman prosecutors are looking into whether securities laws were violated before the plan was revealed by Tronchetti, who subsequently resigned after a public dispute with Prime Minister Romano Prodi over Telecom Italia's reorganization plan. Last week, Tronchetti announced he was reorganizing Telecom Italia's fixed and mobile assets, a move widely thought to lead to a sale of either business. In an attempt to block any sale, Prodi released details of private conversations he had with Tronchetti about the strategic direction of Telecom Italia. The prime minister revealed that Tronchetti had been talking with News Corp. about a possible equity exchange.

To read more about the fallout in Italy:
- take a look at this article from The Wall Street Journal (sub. req.)