Core shareholders in debt-laden Telecom Italia, including Telefonica and Italian banks Intesa Sanpaolo and Mediobanca, held informal talks on Thursday to discuss strategic options to revive the company’s fortunes, but, according to Reuters’ sources, no agreement was reached.

Telecom Italia chairman Franco Bernabe had apparently wanted investors to commit to an investment plan that could be worth around €3 billion, but shareholders shied away from committing more money.

Other proposals reportedly under discussion were the reorganisation of Telecom Italia’s domestic units (creating separate companies for its consumer and business services) in order to justify a capital increase to shore up finances.

But far from committing further to Telecom Italia, shareholders in Telecom Italia’s biggest investor group, Telco – which include Intesa Sanpaolo and Mediobanca, plus insurance firm Generali – are believed to be in discussions about selling their stakes to Telefonica, Telco’s biggest shareholder.

Telco holds a 22.4 per cent stake in Telecom Italia.

“The situation is still in flux and no decision has yet been taken on the shareholder structure,” said one of Reuters’ sources. A further shareholder meeting on 3 October is scheduled.

A Bloomberg report, citing an unnamed source, said the Italian operator was mulling the creation of a company to hold its 12,000 towers before putting it up for sale.

The tower assets, says the source, could be valued between €500 million and €1 billion.

Neither the tower plan, or the reorganisation proposals, appear to impress Robin Bienenstock, a Bernstein analyst. “It’s too little too late,” he said, according to Bloomberg. “They’ve had many different options to reduce their debt over the past few years but they have always shied away from doing the big things.”

Telecom Italia had adjusted net debt of €28.8 billion, as of 30 June, but its market cap currently languishes under $11 billion.

The company’s debt rating is perilously close to junk status. Moody’s Investors Service in August gave Telecom Italia three months to strengthen Telecom Italia’s balance sheet or else the company could be stripped of its Baa3 rating, the lowest investment grade.

To service existing debt, Telecom Italia sold €1 billion of seven-year bonds on Thursday. The yield of the bond, equal to 5.054 per cent, is below Telecom Italia’s average cost of debt (5.4 per cent at the end of June 2013).