Telecom Italia announces that it has reached an agreement with Tele2 for the sale of BBNed. BBNed is a provider of fixed line telecommunication services in the Netherlands, active in the retail, business and wholesale segments. BBned operates on the business market with its brand Bbeyond and on the consumer market with its brands Alice and InterNLnet.

Tele2 will pay in cash 50 million euro (SEK 475 million) on a cash and debt free basis. Completion is expected following approval from Competition authorities in the Netherlands. The disposal of BBNed, which is consistent with the intention of Telecom Italia of refocusing on its core markets, will be substantially neutral at the P&L consolidated level. Morgan Stanley acted as exclusive financial advisor to Telecom Italia in this transaction.