Telecom Italia, the Italian telecommunications giant, said that it was too soon to discuss any done deal on its fixed-line network. This comes after an Italian newspaper report saying the firm would be placing about 60% of the fixed-line network into the market.
The former monopoly is now contemplating to spin off its access network and divesting between 40% to 60% of its interest in the unit. In a report from Il Messaggero, it had cited a draft copy of a term sheet that Telecom Italia's management is formulating for the said deal.
The fixed-line network of the Telecom network could be well worth between Eur12 billion to Eur15 billion or between US$16 billion to US$20 billion according to analyst estimates on the value of the asset.
The news report further said that the between 30% and 40% of the capital for the purchase would be funded by an investment fund owned by state backed financing firm Cassa Depositi e Prestiti. Either bonds or stocks would be floated in the Italian stock exchange would cover 80% of the price while the remaining 20% would be paid in cash by the Italian government financing firm.
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