Telecom Italia shares rise after network spinoff report

MILAN Fri May 3, 2013 3:08am EDT

MILAN May 3 (Reuters) - Shares in Telecom Italia rose as much as 2.4 percent in early trade after a press report that the Italian phone company is pushing ahead with plans to spin off and sell part of its fixed line access network.

At 0707 GMT, shares were up 2.4 percent at 0.66 euros.

The telecoms group is mulling spinning off the network and offloading around 45-60 percent of the unit, Il Messaggero said, citing a draft copy of the term sheet.

The deal would see 30-40 percent of the capital floated on the Italian Stock Exchange and 15-20 percent sold to an investment fund owned by state-controlled financing company Cassa Depositi e Prestiti, the paper said.

Telecom Italia was not immediately available for a comment. (Reporting by Jennifer Clark)