Telecom Italia OKs New Structure, TIM Brasil Not For Sale"

MILAN -(Dow Jones)- Telecom Italia, Friday said its board has approved a new organizational model based on four divisions, and has rejected all the offers received for its Brazilian unit, TIM Brasil.

In a statement, Italy's largest telecommunications group by market capitalization, said TIM Brasil is "strategic" for the company.

Telecom Italia said in November it was studying unsolicited bids for its Brazilian unit, but later put the brakes on a possible sale.

The statement went on to say: "The board, in fact was pleased to acknowledge TIM Brasil's great success, in a highly competitive market, and its technological excellence as well as the high quality of its services."

Telecom Italia's board on Friday also approved its previously-unveiled new structure, based on four business units: domestic fixed services, domestic mobile services, Top clients & ICT and technology.

The Italian operator confirmed this new structure responds to a need for "greater operational flexibility" and will help the group to pursue its strategy of convergence between fixed-line telephony, mobile telephony, broadband Internet and media content.

Four managing directors were also appointed: Massimo Castelli for Domestic Fixed Services; Luca Luciani for Domestic Mobile Services; Stefano Pileri for Technology and Enrico Parazzini to oversee finance, administration and control.

Telecom Italia also said its board has approved a report on network security issues drafted by the company's Internal Control and Corporate Governance committee, welcoming the proposals put forward in the report.

The phone operator added that a copy of the report will be sent to market regulator Consob and published on the company's Web site.

Company Web site: www.telecomitalia.it

-By Giada Zampano, Dow Jones Newswires; +39-02-5821 9907; giada.zampano@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 16th February 2007