Bernabe says wireline spin-off would cause debt difficulties

1 Oct 2008

Telecom Italia’s CEO Franco Bernabe has said that a spin-off of the company’s wireline networks business would hinder debt financing, making it more difficult for the firm to manage its EUR37 billion debt. Bernabe says Telecom Italia’s debt is well structured and will not be affected by the current global economic situation. He claims Telecom Italia had enough liquidity for two years without having to resort to raising fresh capital, Dow Jones Newswires reports. Telecom Italia has been coming under pressure to spin off its networks business to increase competition.

Italy, Telecom Italia (TIM)