Telecom Italia in process of spinning-off fixed-line access networks
Telecom Italia is selecting advisors to begin reviewing a possible spin-off of its fixed-line access network.
Reuters reports that Telecom Italia is in talks with state-backed financer Cassa Depositi e Prestiti (CDP) to move the company’s landline infrastructure into another company and boost broadband investment in Italy.
Local reports in the country suggest Telecom Italia has invited 10 banks to submit proposals for a planned spin-off. The network has an estimated value of between €9-€15 billion, and banks have an October 15 deadline.
“The company clarifies that in this preliminary phase such advisory activity is merely intended to acquire technical, economic and financial value elements,” said Telecom Italia in a statement.
Telecom Italia’s chairman, Franco Bernabe, said the company will take a decision on whether it will go ahead with the spin-off by the end of the year.
CDP would buy a minority stake in the network company, and help the Italian operator to reduce its €30.4 billion debt, and further reach targets it has set.
It is thought two banks could be appointed to advise the company.