TI puts Alice up for sale

7 Jan 2008

Telecom Italia (TI) is putting its French internet unit Telecom Italia France (Alice) up for sale, appointing Credit Agricole’s investment bank Calyon to coordinate the sale process, Le Figaro reports citing unnamed sources. Using neuf Cegetel’s recent EUR425 million (USD627 million) acquisition of Club Internet France as its baseline, the paper estimates the TI-owned unit could be worth as much as EUR650 million (USD958 million). Alice counted approximately 882,000 subscribers by 30 September 2007, compared with around 600,000 for Club Internet, Le Figaro said. Despite enjoying a larger market share, the unit continues to make sizeable losses, frustrating TI’s goal of having it break even at the gross operating profit level this year.