Telecom Italia SpA (BIT:TIT) is considering separating its mobile unit and fixed-line network from the rest of its operations, Reuters reported, quoting three insiders.
The split into three parts would allow the telecoms operator to trim indebtedness and personnel costs, one of the people, a senior political source, told the agency.
The move would also favour investments by new parties, the source said.
Telecom Italia said earlier in May it would end its examination of a plan to separate the fixed-line network, which is valued at between EUR12bn (USD15.5bn) and EUR15bn, on 23 May when its board would meet. The Italian group’s chairman Franco Bernabe has said, as cited by Reuters, the spin-off of the netowrk could be time-consuming and that it could not be predicted whether it could be finalised this year, due to the required government and regulatory approvals.
Following a separation of the network, the group might sell a minority stake in it to Italian state-backed financing institution Cassa Depositie Prestiti SpA (CDP), while still keeping the lion’s share in it, Bernabe said.
Il Messaggero had previously reported that Telecom Italia was considering separating the unit, listing 30% to 40% of it on the local stock exchange and selling the remaining 15% to 20% to an investment fund owned by CDP. The newspaper cited a draft copy of a term sheet by Telecom Italia to CDP, which it had seen.