Italian judge rejects INWIT bid to block Telecom Italia's exit from tower contract

By Elvira Pollina

MILAN, July 13 (Reuters) - An Italian judge has rejected an urgent request by Italian telecom tower company INWIT to suspend Telecom Italia's withdrawal from a tower lease agreement, the company said, confirming an earlier Reuters report.

   INWIT, Italy's largest telecom tower operator, is embroiled in a legal dispute with its two main customers, TIM and Fastweb, both of which have initiated procedures to terminate their respective contracts as part of efforts to renegotiate them on more favourable terms.

TIM and Fastweb are INWIT's main anchor tenants and account for nearly 85% of its €1 billion revenue.

INWIT disagrees with the decision of the judge, a spokesperson said, adding the company reserved the right to challenge the ruling and would fight to defend its position when the case is eventually heard in full. The suspension request was part of a fast-track procedure.

TIM declined to comment.

INWIT shares reversed earlier gains and turned negative after the news. They were down 1.63% at 1305 GMT.

Two sources familiar with the matter said the court rejected the request to halt the withdrawal procedure, finding there was no imminent risk of irreparable harm to the company.

The same sources said a court decision on a separate INWIT request to block Fastweb's move to terminate its tower contract is still pending.

INWIT previously said that following a change of control resulting from a shareholder reshuffle in 2022, the contract was extended until 2038 with no break option, an interpretation disputed by Fastweb.

Under Fastweb's interpretation the current agreements could end in 2028, giving the company the right to issue a withdrawal notice two years earlier.

TIM said the termination would take effect in 2030, when its contract is due to end, or in 2028 if a court were to uphold Fastweb’s interpretation.

(Reporting by Elvira Pollina, editing by Cristina Carlevaro, Alvise Armellini and Keith Weir)