Telecom Italia interested in buying control of Metroweb-sources

(Adds comment by spokesman of F2i)

By Stefano Rebaudo

MILAN, Nov 19 (Reuters) - Telecom Italia (Other OTC: TIAJF - news) is interested in buying a controlling stake in Italian fibre optic provider Metroweb to expand its investments in faster networks, two sources close to the matter said on Wednesday.

Metroweb, which according to the sources is also being courted by Telecom Italia's rival Vodafone, is owned by infrastructure fund F2i.

A spokesman for F2i said that while some investors had expressed an interest in Metroweb, the fund had not started a formal procedure to sell the fibre optic provider.

"We will review the expressions of interest in the coming weeks," the spokesman said.

Buying the stake would allow Telecom Italia to join forces with cash-rich, state-backed holding company Cassa Depositi e Prestiti (CDP), which indirectly controls Metroweb along with F2i.

One of the sources said Telecom Italia had not given indications on the price it would be prepared to pay for the stake. The head of the CDP, Franco Bassanini, said on Wednesday there would be an auction for the stake, without elaborating.

Metroweb, which some analysts have valued at around 400 million euros ($500 million), is 87.7 percent controlled by Metroweb Italia, which in turn is 53.8 percent owned by F2i and 46.2 percent held by CDP-owned fund FSI.

A Telecom Italia spokesman said the company would make a statement on its intentions about Metroweb after a board meeting on Friday which is also due to discuss the company's options in Brazil, including a possible acquisition of local telecoms operator Oi (NYSE: OIBR - news) .

Metroweb was not immediately available for comment, while a spokesman for Vodafone in Italy declined to comment.

The chief executive of Vodafone, Vittorio Colao, said last week he would "take a look at" Metroweb if it were put up for sale.

Italy has one of the lowest penetration rates for broadband in Europe.

($1 = 0.7978 euro) (Additional reporting by Alberto Sisto, Writing by Silvia Aloisi and Francesca Landini; Editing by Crispian Balmer and Mark Potter)