Reuters reported that an Italian newspaper quoted an anonymous source Saturday that Telecom Italia may retain the flotation on the stock market its highly prized fixed-line network. The plan is to leave out the fixed line from any possibility of partnership with Hutchison Whampoa.
Earlier this month Telecom Italia selected a board of directors to study the potential merger with the Hong Kong based Hutchison Whampoa. It also solicited management opinions regarding the possibility of creating a spin-off network company.
Reuters was informed by sources that the intended merger may see Hutchison owning 29.9% of Telecom Italia. In return, the deal will have Hutchison selling three Italian mobile businesses to Telecom Italia and a buy out of some of the main shareholders. To avoid major political problems, the fixed line network was excluded from the deal.
Many Italian politicians have aired their resistance to the possibility of a foreigner owning a major asset of the country that is of "strategic national importance."
Telecom Italia will make its final decision if it will still continue its deal with Hutchison on its next board meeting on the 8th of May 2013.
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