Telecom Italia is to withdraw its plan to raise much-needed funds by spinning off its fixed network, reports Bloomberg, citing unnamed sources familiar with the matter. The plan, championed by former chairman Franco Bernabe, was initially approved by the board in May before a decision by regulator Agcom in July forced the company to put the project on hold. Telefonica's move gradually to increase its influence on Telecom Italia also slowed down the proposal to raise as much as EUR 14 billion through the network unbundling, with the Spanish operator said to prefer the option to raise around EUR 9 billion by selling off Telecom Italia's Latin American assets.
The withdrawal of the spin-off project is set to be confirmed at a board meeting on 07 November when new chief executive Marco Patuano is expected to unveil a business plan addressing how to reduce the company’s EUR 29 billion debt. A successor to Bernabe, who resigned on 03 October, may also be appointed at the meeting.
