Reports in the Italian newspaper Corriere della Sera report that the Italian mobile phone company is considering making a bid for the South African mobile giant MTN.

Telecom Italia is Italy’s largest telephone company operating both fixed and mobile services in Italy as well as owning subsidiaries with operations in Europe and South America, and the group is estimated to be worth about $43billion. MTN on the other hand is focused on the emerging markets of Africa and the Middle East and is estimated to be worth 37.5billion. A merger will give the combined entity exposure in both developed and developing markets.

The reports say the deal will be financed through a combination of raising cash through an equity sale as well as the sale of some of their fixed line assets. Telecom Italia is also said to be in talks with the Libyan Investment Authority about a 10% stake which could aid any bid it intends to make.

It remains to be seen how viable it will be to raise funds given the current market conditions and whether the South African government will be happy to see one its corporate successes fall into foreign hands.

MTN has been the subject of many real and speculative mergers in recent months including successive attempts by the Indian giants Reliance and Bhartia earlier this year.