Olivetti's chief executive, Mr Roberto Colaninno, said yesterday said he would cut 13,000 jobs at Telecom Italia and shed the group's Latin American assets as part of a strategy to back his company's €53billion (£41.74 billion) hostile bid for its Italian rival. He also said he would reduce international and domestic long distance telephone call charges by 70 per cent.

In a clear effort to reassure holders of Telecom Italia nonvoting savings shares, he said Olivetti intended to launch a share buy-back for up to 30 per cent of the outstanding savings shares at a maximum price of €10 (£7.88) a share. This is the same price Olivetti is proposing to offer for all Telecom Italia common stock in its take-over bid.