MILAN, Sept 30 Telecom Italia and
state holding company Cassa Depositi e Prestiti (CDP) are still
far from an agreement on an investment in the Italian phone
group's fixed line network, Telecom Italia's top executive said
in a letter on Monday.
Telecom Italia's chairman Franco Bernabe has drawn up a plan
to spin off the indebted phone company's fixed-line network that
could involve an investment by state lender CDP.
But on Monday, Bernabe complained that his plan lacked
political support. His comment was contained in a letter to the
chairmen of two Senate commissions who have been looking into
the company's strategy.
Bernabe called on the two chairmen to speed up the network
spin off plan and the CDP investment in order to give the
company "a more positive outlook, in terms of a flexible time
table, with regards to a capital increase".
In a parliamentary hearing last week, the 65-year-old
manager said Telecom Italia needed to raise fresh capital to
avoid a credit rating downgrade to "junk" status and that the
best way would be through a capital increase.
Bernabe spoke out against possible plans by top shareholder
Telefonica to sell some of the company's most valued
assets, such as Brazilian unit TIM Participacoes,
once it gains control of its Italian rival.
(Reporting by Jennifer Clark; Editing by Agnieszka Flak)