Finally confirming long-running rumors that it wanted out, Bell Atlantic Corp is to sell its 33% stake in the Infostrada fixed line telecommunications Consortium to Olivetti SpA for $43m. Bell established the venture with Olivetti back in 1985 (CI No 3,183). A number of other companies were said to have been interested in taking on the stake, including British Telecommunications Plc and Deutsche Telekom AG, and the sale to Olivetti makes it look as if the Italian has failed to attract new partners into the venture. In addition to the cash, Bell Atlantic will also receive greater representation on the board of the mobile phone venture it has with Olivetti and other partners, Omnitel Pronto Italia, and on the board of Omnitel Sistemi Radiocellulari, the company which owns 70% of OPI. Bell began making noises about leaving Infostrada when Olivetti started casting around for companies which were prepared to make a greater investment. Its first choice was France Telecom SA, which originally planned to take a 49% holding back in June (CI No 3,183). But France Telecom was shouldered aside by Mannessmann AG, when Mannessmann announced in September that it would be investing $1.3bn to create a new venture with Olivetti that would oversee both Omnitel and Infostrada (CI No 3,241). Olivetti is currently in the process of transferring its original 67% stake in Infostrada over to the new holding company. Infostrada provides phone services such as internet access and data transmission to 900 businesses and competes with state phone monopoly Telecom Italia SpA. Bell Atlantic paid 50bn lire ($28.5m) for the stake in Infostrada back in April 1995.
