Telefonica is reportedly willing to pay 2.3 billion in order to join a consortium that is targeting to acquire a controlling stake in Telecom Italia. The consortium, led by Italian financial institutions, is looking to acquire a majority stake in Olimpia, the investment vehicle through which Italian tyre company Pirelli has a controlling stake in Telecom Italia. (As per current negotiations, Pirelli will receive 3.3 billion from the consortium, in a deal valuing Olimpia at 6.8 billion.) The consortium will form a holding company through which it will become Telecom Italia's largest shareholder with a 23.6 per cent stake. Telefónica will own 42.3 per cent of the holding company's equity, giving it a 10 per cent economic interest in Telecom Italia. Moreover, Telefónica is planning to form an exclusive industrial alliance with Telecom Italia in order to generate 2 billion in annual cost savings.