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Italy: Telecom chairman says merger with Orange is “invention by the press”

By  |  March 13, 2016

A potential merger between Italy’s Telecom Italia and French peer Orange is a “fantasy by the press”, Telecom Italia’s chairman, Giuseppe Recchi, said on Friday.

Recchi also said that Orange Chief Executive Officer Stephane Richard should “take responsibility” for repeatedly talking about a possible tie-up “that is only in his head and … is causing effects on the media and on the market”.

Shares in Telecom Italia have risen strongly in the last few days on speculation the Italian phone company could be a potential takeover target in a consolidating industry.

“Nobody has ever talked about it,” Recchi explained, adding that a merger is “pure fantasy”.

A cross-border deal such as the one hypothesized between the two telecom companies, would not create any value, according to Recchi.

He also said that an alliance with Italian broadcaster Mediaset (MS.MI) is not on the table.

Full content: MarketWatch

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