As part of its alliance with Italtel SpA, AT&T Co is to bring Italtel’s private telecommunications equipment manufacturing and marketing company Italtel Telematica SpA in a shareholder in new company’s to be established in key European markets to sell to private customers. AT&T Information Systems will be the other partner, and the initial markets are the UK, Spain, Portugal and Greece. The new companies will market both AT&T products enriched by the ones it inherited with its Paradyne acquisition, and Italtel products. In Italy, Italtel will have exclusive marketing rights to AT&T’s System 75 and Definity PABXs, and its modems and multiplexers. Italtel may eventually manufacture the two PABX lines under licence. Italtel Telematica will also be offered minority stakes in any acquisitions or joint ventures AT&T may make in other European countries. AT&T paid $130m for a 20% stake in Italtel, and Stet SpA, Italtel’s parent, took 20% of AT&T Network Systems International NV.
