Deals
Telecom Italia Talks to Spin Off Network Are Hurt by Economy
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Telecom Italia SpA’s talks to spin off its fixed-line network are running into difficulty and Fitch Ratings said today Italy’s weak economy will weigh on the phone company’s finances and debt ratings.
The negotiations continue and the Italy’s economic environment isn’t favorable for a conclusion, Chief Operating Officer Marco Patuano said at an event in Milan yesterday. Telecom Italia hired Morgan Stanley for advice on the spinoff and told the bank to lead talks with state lender Cassa Depositi e Prestiti SpA, which may acquire a stake in the network, a person familiar with the matter said in December.