Telecom Italia Starts Exclusive Talks to Sell TV Channel

   By Manuela Mesco 
 

MILAN--Italy's largest telecommunications company Telecom Italia (TIT.MI) said Monday it will start exclusive negotiations with Cairo Communications (CAI.MI) to sell its television channel La7.

In a statement after a board meeting, the company said that talks will only be related to the sale of the television channel and not of the whole of Telecom Italia Media (TME.MI), the telecom firm's broadcasting unit, which includes also other television channels and television frequencies and which was put up for sale last year.

Telecom Italia had previously received another offer for its unit from private equity fund Clessidra and an expression of interest by Italian businessman Diego Della Valle, owner of Tod's Group (TOD.MI).

Mr. Della Valle said that he wants to put together a group of investors to make a buying offer for the TV channel and asked Telecom Italia for more time to decide what offer to make.

Earlier in February, Telecom Italia Media reported a preliminary gross operating loss of 44.8 million euros ($59.8 million), compared with a gross operating profit of EUR27.3 million in 2011. The company's net debt rose to EUR260.1 million at the end of December, up from EUR224.1 million three months earlier.

-Write to Manuela Mesco at [e-mail]

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