Telecom Italia

Telecom Italia has launched a significant reorganization of its structure. The board has discussed strategy and unanimously decided a reorganization of its fixed-line and mobile telephone services. TI is considering splitting off and selling all or part of its mobile operations. TIM Brazil is on the top of the list for selling assets; it could be made in the near term. But TIM itself is on the selling list for about €.35bn. Several rationales are seen behind this reorganization: erase a portion of its more than €40bn debt; financial pressure on TI' s CEO Tronchetti Provera who indirectly controls 18% of the company; a third hypothesys could be to focus Telecom Italia as a media company and on broadband services. Effectively, TI has announced a deal with News Corp's unit 20th Century Fox. Under the agreement, the broadband portal operated by Telecom Italia would be supplied with content on sports, entertainment and films from News Corp. Trading in Telecom Italia shares was suspended on the Italian stock market.