Telecom Itailia’s(TI) turbulent flirtation with the spin off of its fixed line assets took another shaky step forward as the company has engaged Morgan Stanley to advise on the process. Telecom Italia would be the first privatized European telecom to take such a step.
Most likely the company would take outside investment in the fixed line assets and retain a majority stake, but the situation is still very much fluid. Spinning off the fixed line assets would remove some regulatory burdens from the wireless business, ad allow the company to reduce its burdensome debt load.
Disclosure: The author has no position in any stock mentioned
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