Telecom Italia chairman meets with Italian PM

News General Italy 21 MEI 2013
Telecom Italia chairman meets with Italian PM

Telecom Italia's executive chairman Franco Bernabe met with Italy's new prime minister Enrico Letta on 20 Monday, according to various press reports. The Business Times reports citing sources familiar with the matter that the two discussed Telecom Italia's proposal to spin off its domestic fixed-line network into a separate company. Telecom Italia's board is scheduled to meet on 23 May to discuss the plans to separate the passive infrastructure. Separating the network assets into a new company could pave the way for the sale of a minority stake to state-backed financing body Cassa Depositi e Prestiti. 

La Repubblica reports that the two also discussed the proposed merger of 3 Italia into Telecom, in exchange for a stake in the incumbent operator for Hutchison Whampoa. The companies have reportedly made little progress in the negotiations, and Hutchison is planning to present its offer also to rival Wind. While a deal with Wind is expected to create even greater synergies, Wind is skeptical about the deal, due to problems reconciling its Russian shareholders and management with the Chinese company, the paper said. 

Categories:

General

Companies:

Wind,  Telecom Italia,  Hutchison Whampoa,  3 Italia

Countries:

Italy

Tags:

Government policy, Corporate strategy, M&A buyouts & divestments

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