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Telecom Italia hopes to pay off its debts by selling a minority stake in its enterprise arm.

Telecom Italia (TIM) wants to sell a minority share in its enterprise service arm. The step was taken to revamp the biggest phone company in Italy, CEO Pietro Labriola said.

Telecom Italia is under massive debt as of late. To curb the difference, the CEO has devised a plan to cede control of his landline grid to state lenders such as CDP. The ideal result would be to break the organization into several independent units and encourage investments.

The turnaround plan

Telecom Italia is looking for a partner to take over its enterprise arm. While there have been valuation issues, it’s a promising prospect to revolutionize the company. Partnering with big names will allow it to not only be a leader in the telecom industry but spread its influence into sectors such as cloud security, infrastructure and IoT.

Both Vivendi and CDP are fighting to acquire a stake in the organization. According to recent reports, Vivendi is looking to value the organization’s shares at €31 billion euros. The bidding is putting pressure on CDP. Telecom Italia’s CEO seems successful at improving the company’s valuation.

The results of a board meeting on 29th September will shed light on the next steps. While TIM shares have seen a dip in the past few days due to the uncertainty within the market, it’s safe to say that there will be an agreeable conclusion for all parties after the board meeting in late September.