Telecom Italia S.p.A. (BIT:TIT), may sell assets worth about EUR 1 billion in a bid to further reduce its debt and potentially remunerate investors, a source familiar with the matter said. The phone carrier may dispose of its remaining stake in mobile tower operator Inwit, valued at about EUR 300 million, the source said, asking not to be named discussing private deliberations. That disposal would come in addition to the planned sale of the carrier's Telecom Italia Sparkle subsea unit, expected to come in at EUR 600 million - EUR 800 million.

A deal for the Inwit holding is not imminent and could materialise as late as in 2026, the source added. A spokesperson for Telecom Italia declined to comment. The company said it will be able to meet its multi-year guidance even if its debt rises this year following the closure of a deal to sell off its fixed-line network - a move drawn up by the one-time monopoly in a bid to bring the debt under control.

The newest disposal would help the former phone monopoly raise cash, which could then be used either to further cut debt or to remunerate shareholders. Telecom Italia's network sale - to US-based KKR & Co - was signed late last year, marking the first time a European phone carrier has opted to sell off its fixed-line grid. KKR last week confirmed that the deal is set to close in the summer.

"Telecom Italia is expected to return to generating cash at group level, as well as in its domestic Italian market, thanks to our new three-year business plan," chief executive officer Pietro Labriola told Italian daily Corriere della Sera in an interview over the weekend. The eventual sale of Sparkle will also help accelerate plans to possibly remunerate shareholders, the CEO said.