Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Telecom Italia eyes sell-offs to boost broadband

Share this article

Telecom Italia eyes sell-offs to boost broadband
Telecom Italia is €28.8 billion in debt. Photo: Vincenzo Pinto/AFP
11:05 CET+01:00
Telecom Italia has agreed to sell its stake in Telecom Argentina as well as telephone masts in Italy and Brazil, the troubled Italian giant said after a board meeting held on Thursday.

It said the sell-offs would help raise €4 billion over the 2014-2016 period as the company struggles to reduce its staggering €28.8 billion mountain of debt.

The plan "envisages some extraordinary transactions intended to strengthen the group," Telecom Italia's chief executive Marco Patuano said in a statement.

The measures include a €1.3 billion bond issue.

Patuano said this would help the company expand an ultra-fast 4G mobile network and increase fibre-optic broadband provision in Italy and Brazil.

The board meeting was the first since chairman Franco Bernabe stepped down last month following uproar in Italy over a campaign by Spain's Telefonica to boost its stake in the company.

SEE ALSO: Telecom Italia faces tense board meeting

Telefonica now holds a 66 percent stake in a holding company which in turn owns 22.4 percent of Telecom Italia, but has an option to own the holding company outright next year and bceome the largest shareholder in Telecom Italia.

The Italian government is looking into ways of modifying the current law on takeovers to prevent Telefonica from increasing its stake, saying this would mean more security and more jobs for Italy.

Don't miss a story about Italy - Join us on Facebook and Twitter.

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

The Swedish university where students tackle real-world problems

Ranked among the world's best young universities in the QS Top 50 Under 50, Linköping University (LiU) uses innovative learning techniques that prepare its students to tackle the challenges of tomorrow.

Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement