TIM CEO says single network deal not blocked by political crisis

MILAN (Reuters) -Talks between Telecom Italia (TIM) and state lender CDP to form a single network operator are proceeding despite an early election to be held in Italy next month, TIM CEO Pietro Labriola said on Thursday, citing remarks from a top CDP official.

“Things are proceeding, the political environment is not blocking the activity,” Labriola told analysts during a post results conference call, citing remarks by Pierpaolo Di Stefano, the CDP executive in charge of the single network project.

“This is not a Pietro Labriola or TIM statement, it’s a CDP statement”, Labriola added.

Under Labriola, TIM is seeking an overhaul of its business centred around ceding control of its landline grid to CDP in a bid to raise cash and cut its debt pile.

CDP would then merge TIM’s network assets with those of smaller rival Open Fiber. The state lender, which owns a 60% stake in Open Fiber, is TIM second largest investor.

Labriola was speaking after TIM trimmed its expected profit drop for 2022 after cost cutting and the contribution from the company’s Brazilian subsidiary boosted second quarter earnings.

(Reporting by Elvira PollinaEditing by Keith Weir)