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Telecom Italia Kicks Off Plan to Sell Network to State, Funds

  • Ex-phone monopolist signs MOU to merge grid with Open Fiber’s
  • Plan calls for state lender CDP to have final control of grid
The Telecom Italia headquarter in Rozzano, Italy

The Telecom Italia headquarter in Rozzano, Italy

Photographer: Francesca Volpi/Bloomberg
Updated on

Telecom Italia SpA said late Sunday that it’s preparing to sell off the entirety of its network, in a plan that would shift control of the multi-billion-euro asset to the Italian state. 

The carrier’s shares rose as much as 5.1% in early trading in Milan on Monday. Telecom Italia said it reached a preliminary, non-binding accord with state lender Cassa Depositi e Prestiti SpA, which serves as the government’s financial arm, to combine its grid with a similar network owned by smaller rival Open Fiber SpA, which is controlled by CDP.