Telecom Italian capital increase would 'restore solidity'
To avoid downgrade, alternative is asset sales, says Bernabè25 September, 11:56
While the first option ''would restore solidity'' to Italy's largest telephone company, the second would not, he said.
''We're dealing with an operation that radically redefines the group strategy,'' Bernabè said of the option of spinning off Latin American operations, which he said would reduce TI to an exclusively national company in a market - Italy - which has suffered severe ''erosion'' in revenues and profits.
"The sale of Telecom Italia's stakes in Latin America would lead to a major reduction in the group's international profile and its growth prospects and it may not be possible to doit in the short-term in order to be compatible with the need to avoid the risk of a downgrade," he added. Bernabè spoke to the Senate to explain the deal announced Tuesday that looks set to see the Spanish operator Telefonica take over the company that has a controlling stake in TI, Telco.