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

(Adds details)

MILAN, Oct 10 (Reuters) - Italy's largest telecoms groupTelecom Italia said on Wednesday is selecting advisorsto start assessing aspects of a possible spin-off of itsfixed-line access network.

Telecom Italia is in talks with state-backed financing bodyCassa Depositi e Prestiti (CDP) to move its valuable landlineinfrastructure into a separate company and boost badly-neededbroadband investment in Italy.

The network has an estimated value of 9-15 billion euros.

Italian daily Il Messaggero reported on Tuesday that thetelecoms company has kicked off a beauty contest to pick upfinancial advisors for the planned spin-off.

About ten banks, including Mediobanca , IntesaSanpaolo , JP Morgan , Credit Suisse ,Morgan Stanley and Citi have been invited to submitproposals by a Oct. 15 deadline, the newspaper said.

"The company clarifies that in this preliminary phase suchadvisory activity is merely intended to acquire technical,economic and financial value elements," Telecom Italia said in astatement on Wednesday in response to the press report.

Telecom Italia Chairman Franco Bernabe has said the companywill take a decision on whether to go ahead with the spin-off bythe end of the year.

The operation could see CDP buying a minority stake in thenetwork company, helping Telecom Italia reach its debt reductiontargets and lower its 30.4 billion euro debt pile.

Two banking sources have told Reuters that the group wasconsidering appointing two banks to advise it on the mechanicsof the deal.

CDP is being advised by Deutsche Bank , sourceshave said.

(Reporting By Danilo Masoni; Editing by Lisa Jucca)


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