French Businessman Niel Says Telecom Italia Is "Fantastic Operator" -- Report

Telecom Italia SpA (TI) is a "fantastic operator," but has some weaknesses that need to be resolved, French businessman Xavier Niel said in an interview with Italian daily La Stampa published on Friday.

In the interview with the paper, Mr. Niel is quoted as saying he has got some ideas for Telecom Italia--a company in which he bought options that could get him a 15% stake. When asked whether he would convert his options, he declined to answer.

"Telecom Italia can get anywhere," Mr. Niel said. "But shareholders will need to provide the means to do it."

Mr. Niel, founder of French company Iliad SA (ILD.FR), also said that Telecom Italia could play an active role in the consolidation of the European telecoms sector. "There's a widespread opinion that [Telecom Italia] should be the target rather than the subject of consolidation, but I don't believe this is the case," he said.

He said he sees its Brazilian activities as an opportunity to "bring the growth of that part of the world into [Telecom Italia's] earnings, even though now there are some management issues."

Should he exercise his options into a real stake, Mr. Niel would be the second-largest shareholder in Telecom Italia. He is also the second French businessman who has recently invested heavily in the company. Vincent Bollore has recently amassed a stake of over 20% in the Italian operator through his media company Vivendi SA (VIV.FR) and this week has gained four seats on Telecom Italia's board.

Mr. Niel said in the interview that he only spoke with Mr. Bollore about Telecom Italia once, when he bought the options. "I told [Vincent Bollore] as an act of courtesy, then we didn't speak about it any more."

Write to Manuela Mesco at [e-mail]

(END) Dow Jones Newswires

December 18, 2015 07:15 ET (12:15 GMT)

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