AT&T pursues Telecom Italia

Shares of Telecom Italia may gain after AT&T and Carlos Slim's America Movil each offered to buy a third of the holding company that controls Italy's largest phone operator.

The offer values the underlying shares in Telecom Italia at €2.82 ($5.24) each, 32 per cent more the last closing price. That doesn't include undisclosed net debt at holding company Olimpia, owner Pirelli said yesterday.

Based on the market value of Milan-based Telecom Italia, each one-third stake of Olimpia is worth about US$3.2 billion ($4.46 billion).