Telecom Italia may exchange Sparkle stake for government’s Metroweb shares

Telecom Italia is reported to be in talks with state-controlled lender Cassa Depositi e Prestiti (CDP) over its stake in the Milan-based fibre network operator Metroweb. Reuters writes that Telecom Italia is looking to exchange a stake in its international wholesale business TI Sparkle for CDP’s interest in Metroweb, which is held via Fondo Strategico Italiano (FSI). A report from La Repubblica has suggested that Telecom Italia will offer to pay cash for part of the FSI stake and then offer TI Sparkle shares for the remainder. The incumbent is looking to use Metroweb to boost its presence in the Italian fibre broadband sector in response to utility group Enel’s plans to invest EUR2.5 billion (USD2.8 billion) in the deployment of a nationwide fibre-optic network which will be leased to telecoms service providers.