MILAN--Telecom Italia SpA (TI) has started to review initial reports from advisers at Mediobanca SpA (MB.MI) and Citigroup Inc. (C) on the possible sale of its 77% stake in broadcasting unit Telecom Italia Media SpA (TME.MI), as the company's board met Thursday.
No decision has been made yet, a spokesperson said, adding: "It will take a long time for the process to be completed."
The Italian media company is selling some assets to focus on its core activities, and plans to cut its net debt to its 2012 target of 27.5 billion euros ($35.6 billion), it said in May.
While Telecom Italia posted a EUR606 million net profit in the first quarter, compared with EUR549 million a year earlier, Telecom Italia Media lost EUR15.7 million in the first quarter of 2012, compared with EUR9.2 million a year earlier. This has likely made the broadcasting unit a candidate for sale.
TI Media broadcasts the La7 and MTV Italia channels and owns three multiplexes.
Write to Manuela Mesco at [email protected]