Tuesday, May 01, 2007

Italians to Keep Telecom Control

The ANNOTICO Report

Pirelli was interested in selling it's controlling share of Italia Telecom, and AT &T of the US had shown interest.

As a matter of National Pride, The Italian Finance Minister lined up a number of Italian financial concerns, to join with Spain's Telefsnica  to retain Italian control, that included Assicurazioni Generali, Italy's Top Insurer.

What you don't see just below the surface is the that the chairman of  Generali, Antoine Bernheim said in an initial response:  "I told him we do insurance, not telephones, but that if it was necessary to defend the Italian-ness of Telecom, we were ready,"

"I hope that the government would behave in the same way if - God forbid - it was necessary to defend the Italian-ness of Generali.",

This statement comes just days after Generali issued cries of warning about being threatened by  takeover by larger foreign rivals, such as Axa SA and Allianz SE, and  asked Italy's government to ``be ready to defend'' Italy's biggest insurer from falling into foreign control, if an unwanted bid were made for it.

Bernheim, said ``the government (should) be ready to defend the Italian character of Generali and come to our aid, if there were the need.''      

http://www.bloomberg.com/apps/news?pid=

20601085&sid=aXmQHfRmty4E&refer=europe

Assicurazioni Generali SpA was founded in 1831, amongst the Jewish community in Trieste , which at the time was the most important  seaport  of the Austro Hungarian Empire. Today, Generali has large market shares in Italy, Germany, France, Spain, Israel, and China. and has a market value of 43.1 billion euros ($58.9 billion). Assicurazioni Generali SpA is the third largest insurance company in the world ranked at 21 in the Forbes 500, just behind ING (13) and Axa (15), with 61,561 employees.

Curiously and unfortunately it was Italy that drew criticisms, not Generali when Generali resisted paying policy proceeds to Holocaust heirs in Eastern European countries. Something I have difficulty forgiving them for.

On a lighter note: Unfortunately the Centre Left embarrasses itself by equating Pro Italian with Anti American.

Italians Keep Telecom Control

London Guardian
John Hooper in Rome
Monday April 30, 2007

Control of Telecom Italia is to remain in Italian hands after a deal at the weekend. Pirelli, the conglomerate that controls the company, is to sell its interest to a consortium including Spain's Telefsnica and a string of Italian financial concerns. The Italians will have a majority stake in a new parent company and appoint its president.

AT&T of the US was in talks with Pirelli but withdrew citing regulatory uncertainty. This weekend's deal is bound to revive claims of anti-Americanism in the centre-left governments of Italy and Spain.

The end of the negotiations came as one of the players offered a rare glimpse into the way protectionist walls are built in Mediterranean Europe. The chairman of Italy's top insurer, Generali, said he had joined the consortium to buy Telecom Italia's parent after a call from the finance minister, Tommaso Padoa-Schioppa.

"I told him we do insurance, not telephones, but that if it was necessary to defend the Italian-ness of Telecom, we were ready," Antoine Bernheim admitted. "I hope that the government would behave in the same way if - God forbid - it was necessary to defend the Italian-ness of Generali."

http://business.guardian.co.uk/story/0,,2068403,00.html

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