Telecom Italia May Buy Local Internet-Provider Metroweb
09 October 2015 - 7:36AM
Dow Jones News
By Manuela Mesco
MILAN--Italy's telecom operator Telecom Italia said Thursday it
is weighing options to buy local internet-provider Metroweb in a
bid to strengthen its position in the domestic market.
Speaking at an event in Italy, Telecom Italia's Chairman,
Giuseppe Recchi, said that there's an option to acquire a 40% stake
in Metroweb and then progressively increase it to 100%. The plan
will have to be discussed and approved at a board meeting on Oct.
16, a company's spokesman added.
The acquisition of Metroweb would help the Italian operator
strengthen its position in the domestic market, which represents
the bulk of the company's revenue. Telecom Italia has been
increasingly focused on its Italian market--earlier this year it
announced a boost in investment to upgrade its ultra-broadband
network.
The plan to buy Metroweb was first weighed by Telecom Italia
last year and negotiations with the small operator's stakeholders
started earlier this year. But then they collapsed as Telecom
Italia stated that it would only go ahead if it could get total
control of Metroweb--a plan that Metroweb's stakeholders opposed.
Its stakeholders are Italian infrastructure fund F2i Sgr and Fondo
Strategico Italiano, controlled by the State-controlled lender
Cassa Depositi e Prestiti.
At the time, Telecom Italia was considering investing about
EUR500 million in Metroweb. Yet the figure could be much lower now
as it has stepped up its own investments in the country's
ultra-broadband network and is already reaching part of the
broadband coverage it hoped to get by partnering with Metroweb, a
person familiar with the matter said.
Write to Manuela Mesco at manuela.mesco@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 08, 2015 16:21 ET (20:21 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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