Does this mean good news for MTN come Thursday or is this pure speculation? We have been sold dummies several times with this one. Any views? Worth a punt? Italian suitor for MTN? Sep 23 2008 5:03PM Milan - Telecom Italia SpA could be interested in a tie-up with South African mobile phone operator MTN Group, Corriere della Sera newspaper reported on Tuesday. MTN, Africa's biggest mobile carrier, could open up a growing market for Telecom Italia, the newspaper said, citing "certain rumours". A Telecom Italia spokesperson was not immediately available to comment. An MTN spokesperson said the company did not comment on speculation. Africa could serve as an alternative to Brazil for Telecom Italia, Corriere della Sera said. The company's TIM Brasil mobile unit posted a loss in the second quarter and cut its outlook for 2008 sales and profit last month. Separate merger talks between MTN and India's Bharti Airtel and MTN and India's Reliance Communications broke down this year. MTN has a market value of $27.6bn, according to Reuters data. Shares in Telecom Italia, Europe's fifth-biggest phone company with a market capitalisation of around $28bn, were down 1.74%. Telecom Italia "is a strange suitor for MTN coming from Europe", said Dobek Pater, a Johannesburg-based telecoms analyst. "Telecom Italia will be a winner if they are planning to expand into Africa and Middle East." Pater added MTN, which is rolling out its fibre optic cable in South Africa, could benefit from Telecom Italia's fixed-line expertise. - Reuters
