Italy’s state telecommunications holding company STET SpA reports that AT&T Co will pay $135m to STET to balance out the value of the share exchange agreement under which AT&T takes a 20% stake in Italtel SpA, and STET gets 20% of AT&T’s Network Systems International, the joint venture company currently 15%-owned by Philips NV. STET says that Italtel has been valued at $1,200m, while the AT&T venture is valued at $525m, so the figures do not balance. STET will likely use the $135m buying the 26% of Italtel it does not already own from the Istituto per la Ricostruzione Industriale. Stet also finally revealed its consolidated net profits for 1988, which rose 15% to the equivalent of $898m.
