Euskaltel hires Lazard to sell broadband network: report

MADRID (Reuters) - Spanish regional telecom operator Euskaltel EKTL.MC has hired investment bank Lazard LAZ.N to explore a potential sale of its broadband network, Expansion newspaper reported on Friday, citing unidentified market sources.

Euskaltel would then rent the network back from the new owner and use the cash raised by the sale to develop its Virgin Telco mobile telephone business, the newspaper said.

The company operates mobile telephone, internet and cable TV networks in Spanish northern regions of the Basque country, Galicia and Asturias, where it faces increasing competition from rivals.

Officials at Euskaltel were not immediately available for comment.

Reporting by Inti Landauro and Tomas Cobos; Editing by Jan Harvey