By Manuela Mesco 
 

MILAN--Italy's telecom operator Telecom Italia said Thursday it is weighing options to buy local internet-provider Metroweb in a bid to strengthen its position in the domestic market.

Speaking at an event in Italy, Telecom Italia's Chairman, Giuseppe Recchi, said that there's an option to acquire a 40% stake in Metroweb and then progressively increase it to 100%. The plan will have to be discussed and approved at a board meeting on Oct. 16, a company's spokesman added.

The acquisition of Metroweb would help the Italian operator strengthen its position in the domestic market, which represents the bulk of the company's revenue. Telecom Italia has been increasingly focused on its Italian market--earlier this year it announced a boost in investment to upgrade its ultra-broadband network.

The plan to buy Metroweb was first weighed by Telecom Italia last year and negotiations with the small operator's stakeholders started earlier this year. But then they collapsed as Telecom Italia stated that it would only go ahead if it could get total control of Metroweb--a plan that Metroweb's stakeholders opposed. Its stakeholders are Italian infrastructure fund F2i Sgr and Fondo Strategico Italiano, controlled by the State-controlled lender Cassa Depositi e Prestiti.

At the time, Telecom Italia was considering investing about EUR500 million in Metroweb. Yet the figure could be much lower now as it has stepped up its own investments in the country's ultra-broadband network and is already reaching part of the broadband coverage it hoped to get by partnering with Metroweb, a person familiar with the matter said.

 

Write to Manuela Mesco at manuela.mesco@wsj.com

 

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(END) Dow Jones Newswires

October 08, 2015 16:21 ET (20:21 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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