Libyan sovereign funds are talking to Telecom Italia and other Italian companies about possible stake purchases, Saif Al Islam Gaddafi, the son of Libyan leader Muammar Gaddafi, said on Thursday.

Libyan funds have recently raised their stake in Italian bank UniCredit to 4.9 percent, becoming the second biggest shareholder in the bank.

"Our people are talking with Telecom. I think they are talking about investments or buying funds," Saif said, later specifying that meant taking stakes.

"Our people are talking to Italian companies, big companies, banks," he told reporters on the sidelines of an Italian-Libyan meeting in Rome, speaking in English. - Reuters