Telecom Italia: Bryan Garnier maintains 'sell' rating

(CercleFinance.com) - Bryan Garnier maintains its "sell" recommendation and 0.
78 euro target price on the Telecom Italia share after TIM's CEO presented the Italian government with its plan to split its fixed network assets.

Under the terms of the transaction, the fixed-line and broadband network would be spun off into a new legally separate entity, which would remain under the sole control of TIM, the broker says.

If the scenario was to be confirmed, we see this outcome as a victory for the Italian government in a context of growing tensions between the government and Vivendi, TIM's main shareholder, Bryan Garnier says.

Nevertheless, the deal could have some benefits from TIM's viewpoint too, the broker adds, as such a spin-off would increase visibility and ease tensions with Rome, which has weighed on the share's performance.

Telecom Italia will publish it full-year 2017 results and strategic plans on 6 March.

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