News: MQG UPDATE 1-Italy's CDP may hold 70-77% of combined broadband network under MoU - paper

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MILAN, May 31 (Reuters) - Italian state lender CDP is set to hold a 70-77% stake of the combined broadband network under the preliminary agreement signed with Telecom Italia TLIT.MI (TIM) late on Sunday, daily Il Messaggero reported on Tuesday.

The plan aims to combine TIM's fixed network with that of CDP-controlled broadband rival Open Fiber as CEO Pietro Labriola looks to revive TIM's fortunes via a full-blown split of its landline grid from service operations.

The long-awaited preliminary agreement was also signed by infrastructure funds Macquarie (MQG) and KKR KKR.N , which hold minority stakes, respectively, in Open Fiber and in TIM's last-mile network unit.

According to Il Messaggero, Macquarie and KKR will hold 12-15% and 10-13% of the combined entity, respectively, while Swisscom's SCMN.S unit Fastweb will get a 1-1.5% stake.

Italy is keen to create a single broadband network champion to avoid duplicating investments and to speed up a fibre optic roll-out and digitalisation of its economy.

CDP also controls regulated gas and power grid companies Snam SRG.MI and Terna TRN.MI .

Under pressure for years in its hyper-competitive domestic market, debt-laden TIM is looking to raise cash by hiving off its landline network, an asset analysts value at between 15 billion and 20 billion euros. ($1 = 0.9302 euros)