Telecom Italia may drop network spin off plan-source

MILAN Tue Oct 22, 2013 4:32am EDT

MILAN Oct 22 (Reuters) - Italy's biggest telecoms company Telecom Italia may drop a plan to separate its domestic fixed-line phone network, a source familiar with the situation said on Tuesday.

The board of Telecom Italia approved the spin off plan in May, a move that could free up resources to cut its more than 28 billion euros of debt and fund investments.

The company "intends" to propose a Nov. 7 board meeting that the plan be dropped, the source said without elaborating.

Telecom Italia did not respond to a request for comment.

Bloomberg said in a report that the Italian telecoms operator was planning to terminate the proposed spin-off of its telecoms network at the upcoming board meeting.

Earlier this month, trade unions said Telecom Italia management had put on hold the spin-off project because the right regulatory conditions were not in place. (Reporting by Danilo Masoni, Editing by Patrick Lannin)