ROME: Telecom Italia shares rose to a four-year high after the head of French rival Orange said a tie-up between the two phone companies would be attractive.
Both firms said no talks over a specific deal had occurred, while analysts and bankers said any combination of the two former monopolies would take time and require the political backing of Italy and France.
Orange CEO Stephane Richard’s remarks in a newspaper interview on Sunday come during a period of uncertainty for the indebted Telecom Italia, with a group of investors preparing to sell their shares and Rome discussing measures that may force it into a costly network overhaul.
Telecom companies in Europe have been in a deal-making frenzy since 2013 as they seek to combine fixed-line and mobile services, exit non-core markets and cut costs. But to date no big cross-border deals have joined telecom majors, although
European regulators would like to see regional champions emerge to anchor much-needed broadband investment.
At 1210 GMT, Telecom Italia shares were flat at 1.073 euros after trading as high as 1.11 euros. Orange shares were down 0.3 percent at 16.26 euros.
