Telecom Italia shares rise as company considers tie-up, network spin-off
MILAN, April 12
MILAN, April 12 (Reuters) - Shares in Telecom Italia rose more than 4 percent in early trading on Friday after the telecoms company said it would look at a possible tie-up with Hutchison Whampoa as well as a spin-off of its fixed-line domestic network.
By 0707 GMT, the stock was up 3.1 percent at 0.6315 euros and the Milan blue chip index was down 0.4 percent.
Telecom appointed on Thursday a panel of board directors to consider the proposed tie-up with Hutchison which would make the Hong Kong group Telecom Italia's top shareholder in return for merging their local mobile businesses.
Telecom said in a statement its management would also consider the feasibility of spinning-off the network, although it made no direct link between this and the Hutchison proposal. (Reporting By Danilo Masoni, editing by Jennifer Clark)