Telecom Italia operates a number of data centres across Italy and Europe and could use the spin off to raise much needed funds
Italy’s incumbent telecoms provider, Telecom Italia, has said that it would consider selling off its data centre business, according to reports in the press.
"The data centre deal is an idea that could happen next year," sources familiar with the matter told Reuters news agency.
Telecom Italia holds a significant number of data centres in Italy and across Europe and a potential spin off could raise significant amounts of cash, as the company looks to refocus on its core business offering.
Telecom Italia’s board is currently split into warring factions, with chief share holder Vivendi still trying to wrest control of the boardroom away from activist investor Elliott Management. While Elliott Management has been relentlessly focussed on maximising shareholder return, Vivendi is in favour of reinvesting in the business.
Telecom Italia’s board will meet on 21 October to discuss a replacement for departing chairman, Fluvio Conti, who announced that he would be stepping down last week. For now, Michele Valensise, who joined the TIM board in May 2018 alongside Conti, will serve as interim chairman.
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