Telecom Italia Looks for Next Option as Deal Fails

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July 16 (Bloomberg) -- Bloomberg News' Matthew Campbell discusses what's next for Telecom Italia after a disagreement ended a potential merger with Hutchison Whampoa and a stalled proposal to spin off the company's fixed-line business. He speaks on Bloomberg Television's "On The Move."

His is a best laid plan coming to a not very much situation.

There were discussions from hutcheson whampoa on merging assets read those have gone nowhere.

Also, this plan to spin off telecom italia's copper lines has been put on hold after a regulatory ruling on what this new spinoff could charge other carriers or access to those lines.

If that number is lower, the spinoff does not make much sense.

As a result, both projects are on hold.

That means a very indebted telephone company, debt roughly three times its market value, without much options.

That makes it one of the most difficult country -- companies to deal with compared to some of the other big monopolies.

That is correct.

European telecoms, particularly european -- particularly fundamental -- continental telecoms, have big problems.

Telecom italia seems to be a special case for a few reasons.

It does not have an emerging market operation.

It has a big operation in brazil, but france telecom and telefonica are international phone companies.

Telecom italia is not in the same degree.

It is very dependent on the challenged italian market.

Last time you came on, you discussed the fact that it is difficult for them to agree with hutcheson whampoa.

That is right.

It is not easy to make a deal in europe at the moment.

That is attracting others.

We have heard at at&t looking at european acquisitions because things are cheap.

Even in italy, there are big challenges in the telecom market.

It is a big country and a wealthy country.

People will always have iphones and whatever else happens to be the latest and greatest device.

There is money to be made, but telecom italia is having problems at the moment.

Talk to me about vodafone.

They will close the deal in october.

Is that earlier than anticipated?

What this timeline indicates is that the chief executive officer of vodafone is pretty confident of securing antitrust approval.

No one thought that antitrust approval for him in this deal would be too tough.

But this is a sign that they think it will be a smooth ride.

Are we going to hear about more m&a? we have always said, these are big deals and they have been a long time in the making.

Is there anything else we should be watching out for?

There is a great deal we should be watching out for.

A number of situations have been flagged by analysts, investors, journalists.

One of which is the great mystery of what will happen with vodafone's stake in wireless.

If it does sell it to verizon's parents, that would be the largest telecom deal ever or close to it.

There is the question of what vodafone does in europe, what it does with that money.

Fastweb has been mentioned as a target.

There is the question of what happens with smaller european operators.

Kpn, everything everywhere here in the uk, which could change hands.

Yesterday, we

This text has been automatically generated. It may not be 100% accurate.

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