Telecom Italia: Network Spin off Rumors 'Groundless'

   By Pietro Lombardi 
 

Telecom Italia SpA (TIT.MI) late on Monday denied press speculation about a spin off or sale of its network, labeling such rumors as "completely groundless."

The network is a strategic asset for the company and its industrial plan, Telecom said.

Vivendi SA (VIV.FR), which has a 23.9% stake in the former Italian telephone monopoly, last week said it would appeal a decision by Italy's securities market regulator which deemed that the French media group has de facto control over Telecom Italia.

Vivendi has previously acknowledged that it directs and coordinates activities at Telecom Italia, but denied having de facto control under Italian law. Vivendi appointed the majority of Telecom's board and in June it's chief executive Arnaud de Puyfontaine became Telecom Italia's executive chairman.

The ruling by Consob, the Italian watchdog, could have consequences for the French group, among which might be the consolidation of Telecom Italia's debt on Vivendi's own balance sheet. Telecom Italia said it had adjusted net financial debt of 25.1 billion euros ($29.9 billion) at June 30.

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

September 19, 2017 03:35 ET (07:35 GMT)

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