Telecom Italia suspends fixed network spin-off plan

News Broadband Italy 16 JUL 2013
Telecom Italia suspends fixed network spin-off plan
Telecom Italia has decided to suspend its plan to spin off its fixed network, following the recent regulatory decisions lowering wholesale broadband rates in Italy. In a meeting convened 15 July, the board examined the draft decisions by regulator Agcom and decided they resulted in uncertainties that could affect the feasibility of the fixed network separation plan. As a result the plan is suspended until the impact of the regulation can be evaluated. 

The Italian operator first announced the plan in May and was expected to sell a stake in the new network company to investors as part of efforts to reduce its debt. The suspension of the fixed network plan could help it revive talks to acquire mobile operator 3 Italia from Hutchison Whampoa. These talks were halted earlier due to difficulties valuing a stake for Hutchison in the new company pending the fixed network spin-off.  

Categories:

Fixed

Companies:

Telecom Italia

Countries:

Italy

Tags:

Regulations, Corporate strategy, M&A buyouts & divestments

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