VENTURES AFRICA – Egyptian magnate, Naguib Sawiris, could be set for a $2 billion capital outlay in Telecom Italia, Italy’s telecommunications firm, Reuters reported on Monday.
However, the investment depends on Telecom Italia’s major shareholder, Telefonica’s withdrawal from Telecom Italia, Reuters reported, citing a source close to the matter.
Sawiris failed in his bid to acquire a stake in Telecom Italia two years ago after he had claimed the firm required massive financial backing.
“I don’t expect things to move in the short term,” the source told Reuters. “Telecom Italia still looks too expensive for Naguib.”
Sawiris has always been against the role Spain’s Telefonica played in Telecom Italia in view of its contrasting interests in Brazil.
The 15 percent Telefonica stake in Telecom Italia has caused it problems in Brazil as it now owns Vivo, the market leader in Brazil and a peer of Telecoms Italia.