Telecom Italia is working on a restructuring plan that includes the spin off and sale of all or a part of its mobile unit Telecom Italia Mobile, which could be worth about 35 billion euros ($44 billion), a Dow Jones report, quoting sources, said.
The Dow Jones report said the move is part of a new strategic plan to re-design Telecom Italia as a broadband media, telephony and content provider through a content deal currently being negotiated with News Corp.
Telecom Italia chairman Marco Tronchetti Provera and News Corp's Rupert Murdoch met earlier this week in ongoing talks for a content agreement that would see News Corp supply films, entertainment and sports to Telecom Italia's broadband portal, the Dow Jones report said.
The Dow Jones report quoted the source as saying that "Tronchetti Provera will inform the board of his intention to spin off and sell Telecom Italia Mobile in order to concentrate on the delivery of content by broadband.'
According to the Dwo Jones report, the source also said that Telecom Italia's advisors began contacting 'several US private equity funds' in late July about a possible purchase of Telecom Italia Mobile.
Also contacted was De Agostini, a cash-rich unlisted Italian publisher that recently diversified into online gaming with the acquisition of Lottomatica, the Dow Jones report further said.