UPDATE 1-Telecom Italia seeks advisors to look at network spin-off
* Advisory activity is at preliminary stage
* Ten banks invited to submit proposals by mid-Oct - report
MILAN, Oct 10 (Reuters) - Italy's largest telecoms group Telecom Italia said on Wednesday is selecting advisors to start assessing aspects of a possible spin-off of its fixed-line access network.
Telecom Italia is in talks with state-backed financing body Cassa Depositi e Prestiti (CDP) to move its valuable landline infrastructure into a separate company and boost badly-needed broadband investment in Italy.
The network has an estimated value of 9-15 billion euros.
Italian daily Il Messaggero reported on Tuesday that the telecoms company has kicked off a beauty contest to pick up financial advisors for the planned spin-off.
About ten banks, including Mediobanca , Intesa Sanpaolo , JP Morgan , Credit Suisse , Morgan Stanley and Citi have been invited to submit proposals by a Oct. 15 deadline, the newspaper said.
"The company clarifies that in this preliminary phase such advisory activity is merely intended to acquire technical, economic and financial value elements," Telecom Italia said in a statement on Wednesday in response to the press report.
Telecom Italia Chairman Franco Bernabe has said the company will take a decision on whether to go ahead with the spin-off by the end of the year.
The operation could see CDP buying a minority stake in the network company, helping Telecom Italia reach its debt reduction targets and lower its 30.4 billion euro debt pile.
Two banking sources have told Reuters that the group was considering appointing two banks to advise it on the mechanics of the deal.
CDP is being advised by Deutsche Bank , sources have said.
(Reporting By Danilo Masoni; Editing by Lisa Jucca)
Keywords: TELECOMITALIA NETWORK/