Telecom Italia boss may propose capital hike at Oct. 3 board -sources
MILAN, Sept 27
MILAN, Sept 27 (Reuters) - Telecom Italia Chairman Franco Bernabe is considering proposing a capital increase of between 3 billion euros and 5 billion euros ($6.7 billion) at the company's board meeting on Oct. 3, two sources familiar with the situation said on Friday.
"He should present a capital hike of 3-5 billions," one of the sources told Reuters.
The second source said Bernabe was checking if he had enough support for the plan.
The sources said a capital hike could divide the board, as core investors are reluctant to inject fresh cash into the company.
In a parliament hearing this week, Bernabe said Telecom Italia needed to raise money to avoid a credit rating downgrade to "junk" and that the best way to do so was a capital increase.
Asset sales - an option seen as preferred by core shareholder Telefonica - might take too long, he added.
($1 = 0.7418 euros) (Reporting by Stefano Rebaudo and Danilo Masoni; editing by Francesca Landini)
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