Telecom Italia Is Said to Consider 30% Network Stake Sale

Telecom Italia SpA, the phone company that’s exploring a separation of its fixed-line assets, is considering a sale of an initial 30 percent stake in a new company to state lender Cassa Depositi e Prestiti, according to two people familiar with the matter.

The carrier may let Rome-based CDP increase its holding over time, said the people, asking not to be identified because the discussions are preliminary and no agreement has been reached. Telecom Italia may transfer as much as 10 billion euros ($13 billion) in debt to the new company, which will own its fixed-line network, and CDP may invest about 2 billion euros initially, said one of the people. Telecom Italia could also consider an initial public offering of the division in the future, another person said.