Telecom Italia has confirmed it will drop its strategic alliance with AT&T.
The Italian telco said it will focus on its newly formed partnership with Cable & Wireless instead.
Gian Mario Rossignolo, Telecom Italia's chairman since January, said the company is dropping its intended 'global alliance' with AT&T, formed last July. The two firms were to have targeted Europe together and planned a joint venture in South America.
Instead, Rossignolo said he prefered to work with Cable & Wireless in a link-up worth $2 billion. Under the deal struck in April, Telecom Italia will gain a 20 per cent stake in the UK telco's West Indies operation, plus five per cent of its north American operation. The Italian giant will also increase its stake in French mobile operator Bougues Telecom to 30.8 per cent, by acquiring Cable & Wireless' 20 per cent share.
A Telecom Italia representative said: "When Rossignolo arrived he said we there would not have global alliances only strategic alliances in specific regions."
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