France Telecom and Spain’s Telefonica are poised to gatecrash the near £2 billion battle for a controlling stake in Telecom Italia, it emerged today.

The two telecoms groups are understood to be mulling individual counteroffers to a combined American-Mexican bid by AT&T and America Movil.

The Wall Street Journal claimed that both France Telecom and Telefonica have already contacted Italian banks and insurers with a view to forming a bidding consortium palatable to the Italian government.

Ministers in Rome are under growing pressure to come up with a solution to ensure Telecom Italia does not fall into foreign hands.

Both France Telecom and Telefonica declined to comment.

Pirelli, the legendary tyre manufacturer, sparked the bid battle on Sunday by announcing it was in talks with AT&T and America Movil about a sale of its 66.6 per cent stake in the Olimpia SpA holding company.

Olimpia has a controlling 18 per cent share in Telecom Italia.

The move has sparked a political storm in with rival shareholder Mediobanca, the leading Italian bank, among those working to find an alternative way of buying out Pirelli’s shares.

The row has renewed tensions tearing apart the Telecom Italia boardroom.

Pirelli has moved to sack Guido Rossi, the current Telecom Italia chairman, by leaving him off a list of 17 directors it wants to stand for election at the group’s annual general meeting on April 16.

Mr Rossi opposed an original plan to for a strategic alliance with Telefonica and has repeatedly clashed with his predecessor and Pirelli chairman Marco Tronchetti.

Pirelli today said it could count of 23 per cent to 24 per cent support for its list.

Sources close to Olimpia claim that Pasquale Pistorio, the former chairman of ST-Microelectronics, Europe’s largest chipmaker, is likely to replace Mr Rossi.

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