Telecom Italia's Board of Directors will approve the spin-off of its fixed-line network tomorrow.Bloomberg reported the news, claiming that this is what Socgen analysts wrote after a meeting with the company's management.
"Telecom Italia will likely reach an agreement in principle to move forward with the network separation, and discussions with Cassa Depositi e Prestiti and others can begin at full speed," Socgen said. Following the news, Telecom had a meteoric rise on the stock market, gaining 1,6%. Half an hour after the close, the stock was up 0,54%.
Intermonte analysts also said in a note today that they expect tomorrow's board meeting to approve the separation process, which could, however, be halted at a later stage, depending on the new regulations for the sector that the EU will soon adopt. This step is preparatory to a possible agreement with Cassa Depositi e Prestiti for the sale of a 20-25% stake in the new company for 2 billion euros.
Equita analysts agree: "We expect tomorrow's board meeting to decide whether to proceed with the separation of Opac, the hypothetical new access network company." They also point out that the actual implementation will depend on the agreement reached with the regulator regarding the regulatory framework.
