Anti-social network

24 November 2017 By Liam Proud Follow @liamwardproud

The telecom group is reportedly exploring selling a stake in its network. A spinoff might boost TI’s valuation, and ease shareholder Vivendi’s feud with the Italian government. Yet fierce competition from rival Open Fiber would remain unsolved, and deter potential investors.

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Telecom Italia is planning to hire advisers to explore a spinoff of its landline network, Bloomberg reported on Nov. 23 citing people familiar with the matter.

The telecom group would keep control of the network, but sell a minority stake to reduce its debt, Bloomberg said. Telecom Italia reported net debt of 26.2 billion euros in its third-quarter results released on Nov. 10.

Telecom Italia Chief Executive Amos Genish disclosed the plans to hire two advisers to evaluate the costs and benefits of the move to Carlo Calenda, Italy’s minister of economic development, in a Nov. 20 meeting. The discussions were about "whether the structure will be one company or two separated companies" rather than about who controls Telecom Italia or the network, Bloomberg quoted Calenda as saying.

Telecom Italia shares rose 1.8 percent to 0.74 euros at 1000 GMT on Nov. 24.

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