Telefonica (TEF +1%) is willing to sell its 10.5% indirect stake in Telecom Italia (TI +4.3%),...

Telefonica (TEF +1%) is willing to sell its 10.5% indirect stake in Telecom Italia (TI +4.3%), two sources tell Bloomberg. Telefonica has been insisting it has no plans to sell the stake, which is worth $1.6B and is the result of a 22.4% stake held by Telefonica and 3 Italian banks. But the European/Latin American carrier has been eying a variety of asset sales as it tries to further pare its debt load. Reported merger talks regarding TI and Hutchinson Whampoa's Italian mobile units could be influencing Telefonica's thinking.