Telecom Italia is open to listing a stake in NetCo – the company about to be created to control its fixed network business – when it achieves fully regulated status, Reuters reported.
The news website’s sources said the Italian operator would consider selling a stake after it had been given Regulated Asset Base status – which guarantees returns from authorities on infrastructure investments.
Speculation on Telecom Italia’s intent for NetCo comes amid growing pressure from activist investor Elliott Management, which wants the operator to cash in assets to provide improved shareholder returns.
Earlier this week Elliott Management urged Telecom Italia to sell a minority stake in NetCo and investigate the sale of international wholesale unit Sparkle.
The increasingly vocal investment company also wants to curb the influence of Telecom Italia’s largest shareholder Vivendi by replacing six members of the board with six independent executives.
Members of the board targeted include chairman Arnaud de Puyfontaine, who is also CEO of Vivendi.