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Telecom Italia mulls scrapping 2013 dividend, Italy operations rejig: sources

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(Globalpost/GlobalPost)

MILAN (Reuters) - Telecom Italia is considering scrapping its 2013 dividend and starting a reorganization of its Italian activities, two sources close to the matter said on Friday, ahead of a board meeting next month to approve a new business plan.

The sources said the heavily indebted telecoms group is also considering a rights issue and the sale of its Brazilian unit TIM Participacoes but its board is expected to take time to decide on both options.

"They need (savings for) one billion euros. They are likely to scrap the dividend, which would save them some 400 million euros, and then they'll cut capital expenditure," said one of the sources.

In a statement, Telecom Italia said it could not comment on press reports about a possible capital increase, asset disposals and cancellation of its dividend, calling them "journalistic speculation."

It said its 2014-2016 business plan would be presented to the board on November 7.

(Reporting by Stefano Rebaudo, writing by Danilo Masoni, editing by Silvia Aloisi)

http://www.globalpost.com/dispatch/news/thomson-reuters/131025/telecom-italia-mulls-scrapping-2013-dividend-italy-operations-r