Shares in Pirelli and Telecom Italia rose on Wednesday on the expectation that Brazil's telecoms regulator will today clear the way for new investors to take a controlling stake in the Italian telecoms group.

Telefónica of Spain and a group of Italian investors agreed to purchase a 23.6 per cent controlling stake ofTelecom Italia for €5.1bn ($7bn) at the end of April. Pirelli holds a controlling stake in Telecom Italia. But because both Telecom Italia and Telefónica have large stakes in Brazilian mobile operations, approval byAnatel, is pivotal.