Feeds

Minnow eats whale – Olivetti beats DT Italian bid

And now it's quite possible nobody's going to love Deutsche Telekom

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Deutsche Telekom's bid to merge with Telecom Italia collapsed horribly over the weekend, leaving the German giant's strategy apparently in ruins. Olivetti, which had been mounting its own hostile bid for Telecom Italia, squeaked acceptances of 51.02 per cent at the eleventh hour, leaving DT to return to its tent. Which former ally France Telecom is now pissing into. The French and German companies have run a long-term alliance in Europe, and are also partners with US Sprint in the Global One venture. France Telecom was incandescent that DT had mounted the Italian job without even consulting it, and began suing for billions of Euros last week. The French view was that DT's move had effectively ended the alliance, and it's going to be difficult to pick up the bits of this one. Olivetti meanwhile has performed what it must hope is at least its penultimate conjuring trick (because making the deal work long term is going to have to be an even better one). Telecom Italia is far larger than Olivetti, which is going to pick up huge debts in order to finance the deal. Olivetti has been busily transforming itself into a telecoms company in the past few years, but will now sell its holdings in Infostrada, a fixed line challenger in Italy, and Omnitel, which competed with Telecom Italia on the mobile front. So Olivetti is effectively switching horses from upstart to establishment. The mayhem the company has created in European alliances is however one of the most significant aspects of the deal. The Deutsche Telekom-France Telecom axis had been the most redoubtable in Europe, while although Global One's performance has been less than stellar, the international version had been seen by many analysts as a blueprint for international telecoms alliances. So if the whole thing does fall apart in acrimony the alliance music can start again, with the outfits that didn't get the best partners last time coming back for another go. BT, AT&T and C&W will no doubt be open for deal-making, and someone new may well dance with France Telecom. But having blotted its copybook once already, Deutsche Telecom may have trouble finding new friends to grapple with behind the bike shed. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.