Telecom Italia is planning to sell off its large assets, including its businesses in Brazil. The company is undertaking a restructuring exercise involving splitting of its business into three in order to finance a multi-billion euro investment in next-generation broadband networks. These plans have created a dispute between the company’s board and the government. While Marco Tronchetti Provera, chairman of the company, has resigned following dissent on the subject, Guido Rossi, Tronchetti’s replacement, has pledged to continue with the restructuring plan. Rossi has stated that the company has no plans to sell its assets and expects the company’s debt to fall by more than $4 billion. He said that Telecom Italia had enough liquidity to meet all the deadlines of its debt until the end of 2007.
