Italian Prime Minister, Enrico Letta (pictured), is to ask Telefonica’s CEO, Cesar Alierta, for guarantees on jobs at Telecom Italia following the Spanish operator’s agreement last month to take gradual control of the Telco investment vehicle which, in turn, holds the reins of the Italian incumbent, according to Bloomberg.

Letta is due to meet with Alierta today (29 October) following a separate meeting with the interim Telecom Italia CEO, Marco Patuano, yesterday.

Telefonica wields growing power at the incumbent after agreeing to buy out other investors in Telco, the holding company with a 22 per cent stake in Telecom Italia, which also controls the incumbent’s board.

The meetings will set an agenda ahead of an important strategy presentation to Telecom Italia’s board on 7 November.

The operator needs to decide on debt-reducing measures which could include a capital increase of as much as €2 billion; asset sales, such as TIM Partecipacoes in Brazil; a scrapping of its dividend; and even a spin-off of its fixed network.

In this context, Letta is looking for reassurances on jobs at Telecom Italia. The incumbent, which has more than 82,000 employees, needs a strong backer, he said.

“I have no objections to the investor being foreign and they can continue to trust Italy,” said Letta in a TV interview.

However, local unions have raised concerns over Telefonica’s intentions for Telecom Italia.

And Letta’s administration has signed a decree giving it a voice in any sale of Telecom Italia’s fixed network to a foreign buyer. This move gives leverage in any talks with the Italian incumbent.

Other potential obstacles to the progress of the Telecom Italia-Telefonica link-up include the opposition of other investors.

Telecom Italia board member Tarak Ben Ammar said members were not planning a mass resignation at the 7 November meeting to avoid a vote on a request for a shareholder meeting by investor Marco Fossati, who owns about five per cent of the incumbent.

Fossati wants a shareholders meeting to revoke the current board, which is controlled by appointees from Telco.