BRITISH TELECOMMUNICATIONS PLC
10 September 1999
BT TAKES STAKE IN ITALY'S LARGEST BUSINESS
INTERNET SERVICE PROVIDER
BT today announced that it is to acquire a 32.5 per cent
stake in I.NET, Italy's leading business Internet service
provider, for a sum in the order of £13 million.
I.NET provides Internet connectivity to business
customers through leased and dial-up lines, as well as web-hosting services
and e-commerce platforms.
The company, which has a technical and service staff
of around 100, expects a turnover in 1999 of more than £13.5
million.
I.NET has more than 3,500 large and medium
customers, such as the leading newspaper La Repubblica, the Italian Stock
Exchange, clothing giant Benetton, and Italian bank Banca Intesa.
Its main offices are in Milan and Rome, with
additional presence through franchises and network infrastructure in more
than 60 other Italian cities.
Italy is the fourth largest telecommunications
market in Europe and use of the Internet there is expected to undergo rapid
growth. The number of corporate users on-line is predicted to rise from its
current figure of 400,000 to around 3.2 million by 2005, an annual growth
rate of 35 per cent.
Pat Gallagher, president of BT Europe, said:' This
is an important step towards consolidating our Internet presence in
Italy, one of the fastest growing markets in Europe. We are excited about
the synergies we will be able to leverage between Albacom, I.NET and
Blutel.
' I.NET's reputation and quality standards are
perfectly in line with our business philosophy across all sectors.'
BT's stake in I.NET, which makes it the second
largest shareholder in the company, will be acquired on a proportional basis
from current shareholders.
I.NET expects to go public at the end of this year.
Filing procedures have already begun and merchant bank AFV-Milla have been
appointed as global co-ordinators for the placement.
Roberto Galimberti, chief executive of I.NET, said:
'We are honoured to become part of the BT family, one of the leading
global communications companies. Together with BT and Albacom we
will reinforce our national and international backbone as well
as developing our product portfolio to include future e-commerce and e-
business solutions.'
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