T.Italia CEO: Network Spinoff Would Make Debt Financing Hard
ROME (MF-Dow Jones)--Telecom Italia's Chief Executive Franco Bernabe said Tuesday a proposed law which would require network separation would make it more difficult to manage the company's debt.
Speaking in front of Parliament, Bernabe said without its fixed-line network, Telecom Italia - which is burdened by EUR37 billion in debt - would have trouble getting financing from banks.
Telecom Italia's head was answering questions on the possibility the Italian government could introduce a law forcing the former monopoly to spin off its access network into a separate company.
He said Telecom Italia's debt was "well-structured" and it wouldn't impact on the operator's choices, "even in light of the current (difficult) market situation."
He said Telecom Italia had enough liquidity for two years without having to resort to raising fresh capital.
-By Carlo Renda, with MF-Dow Jones, Giada Zampano, Dow Jones Newswires; +39-06-6976-6920; giada.zampano@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 30th September 2008
