The Spanish Telefonica has 42,3% of Telco which effectively controls Telecom. This prevents Telecom from becoming a dynamic international player. Either Telecom stays put or Telefonica has to see its presence marginalized. According to the article Berlusconi could use his role as PM to forward his interests with Prisa by putting pressure on Telefonica in Italy.
The big day will be October 28th. Whether the Spanish or the Italians- or the government- makes a move or leaves things as they are.
If nothing happens by that date the present situation of Telco will continue as is on an annual basis. Telco however does little else than keep Telecom Italia afloat with a constant yet minor reduction of its debt.
In effect Telefonica has tied down Telecom Italia and can afford to play dynamically on other markets where Telecom Italia is a competitor. Telefonica, by this reasoning, has an interest to keep its stake in Telco. What kind of scheme Berlusconi could force for his own interests may resemble the Alitalia debacle. There are no limits to the masochism of Italian industry and finance. They could comply with his schemes.
