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Article: Telecom Italia merger boosts Milan-based Pirelli.
- Article from:
- Sunday Business (London, England)
- Article date:
- December 12, 2004
CopyrightCOPYRIGHT 2004 Sunday Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Robert Gallbraith
Dec. 12--MILAN, Italy -- The positive reaction to the 21 billion euros ($27.7 billion, 14.5 billion pounds) plan to merge Telecom Italia and its mobile subsidiary, TIM, is vindication for Marco Tronchetti Provera and his strategy as chairman, since his company, Pirelli, and its allies took control in 2001.
His previous actions, including the original takeover, were criticised and provoked anger among the group's minority shareholders. Now there is agreement that combining the businesses can create value, despite a much higher level of borrowing. It will also help ease some of the problems, such as corporate governance, that have ...