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Swisscom chief to head Fastweb temporarily

Swisscom chief to head Fastweb temporarily

Swisscom AG chief Carsten Schloter is temporarily taking over the helm of Italian subsidiary Fastweb to avoid having Fastweb put under outside administration as it is investigated by prosecutors, Swisscom said Friday.
Fastweb's CEO, Stefano Parisi, has offered to suspend himself, Swisscom said.
Fastweb and Telecom Italia are being investigated by Italian prosecutors for alleged involvement in a suspected (EURO)2 billion ($2.7 billion) money-laundering ring.
Telecom Italia and Fastweb both deny the accusations and contend they were victims of a criminal organization.
Prosecutors say they are probing more than 50 suspects in what they say was a money-laundering scheme using dummy companies to carry out fake transactions between 2003 and 2007. The suspects are also accused of tax evasion.
Among the suspects is Silvio Scaglia, the founder of Fastweb, an Italian broadband provider, which was bought by Swisscom in 2007.
As a result of Schloter's immediate appointment as Fastweb's interim CEO, "the prosecuting authorities have withdrawn their application to establish a commission" that would have put the subsidiary under outside administration, Swisscom said in a statement.
Fastweb's board also decided to set aside a (EURO)70 million provision in its 2009 accounts to cover financial risks resulting from the case, said Swisscom.
It revised Fastweb's 2009 results from a (EURO)36 million net income to a loss of (EURO)34 million.


Updated : 2021-03-01 17:25 GMT+08:00