TIM seeking advisors for possible network separation

24 Nov 2017

Telecom Italia (TIM) is considering a plan to spin off its network operations into a separate division in order to allay government fears that its largest shareholder – Vivendi of France – has too much influence over an asset that the state sees as being of strategic importance. A report from Bloomberg cites unnamed sources who suggest that the telco is looking to appoint advisors to examine the spin-off plans. TIM’s CEO Amos Genish met with Carlo Calenda, Italy’s minister of economic development, earlier this week in Rome, with the network separation thought to have been on the agenda. It is expected that TIM would split its network business into a new entity, which will remain part of Telecom Italia Group. A stake in the new division could then be offered for sale to help the operator pay off some of its debt pile.