Telecom Italia SpA has put its 2009 earnings results on hold as Italian authorities investigate an alleged money laundering scheme between the telco's Sparkle unit and broadband provider Fastweb SpA.
In a statement released on Wednesday, Telecom Italia's board has been asked to hold off on approving its 09 results in addition to updating its three-year business plan until the board meets again on March 25.
Italian authorities seized about $406.4 million of Sparkle's credits and liquidity on Wednesday stemming from the ongoing investigation into a money laundering scheme between the two service providers. According to Italian prosecutors, the money was laundered with management knowledge at both companies through a fake international phone service purchases and sales between 2003 and 2006.
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