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P.M. BRIEFING : AT&T and Italtel Sign Broad Pact

June 05, 1989| From Times wire services

ROME — The Italian telecommunications equipment maker Italtel today signed an agreement with American Telephone & Telegraph Co. for a far-reaching partnership in manufacturing and sales of equipment.

Under the accord, AT&T will acquire 20% of Italtel. In exchange, Italtel's parent, the Italian state holding company STET, will take a 20% share of AT&T-Network Systems International (ATT-NSI), a joint venture between AT&T and Philips NV of the Netherlands.

In addition, AT&T has agreed to make a direct investment of almost $150 million in Italtel, said an official involved in the deal who requested anonymity.

The accord, which was widely expected, was an important victory for AT&T. It allows the U.S. giant access to the ripe Italian telecommunications market, which is dominated by Italtel, and improves AT&T's position for the post-1992 unified European market.

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