Despite the drawn-out negotiations that led to AT&T Co taking a 20% stake in Italtel SpA about four years ago, the Italian government is again looking for a partner for the telecommunications equipment manufacturer, and Siemens AG has confirmed that it is one of five international telecommunications firms in talks with Italtel. The talks could lead to co-operation or even an acquisition. Options range from close co-operation to Siemens taking a minority stake or even a majority stake in Italtel.Siemens told Reuter that discussions with Italtel should be described as neutral talks rather than negotiations with a specific aim. Italtel is currently 80% owned by Stet SpA. The others in talks with Italtel are L M Ericsson Telefon AB, Northern Telecom Ltd, existing shareholder AT&T Co and Alcatel NV. The Italian press reckons that Siemens is the front runner and that although AT&T already owns 20%, it is thought unlikely to want to raise its stake. Ericsson is seen as not having enough cash to acquire Italtel and Alcatel already owns Italian manufacturer Telettra SpA, which was too have merged with Italtel until politics intervened.
