Italy officials to discuss sale of post office stake

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(Reuters) - Italian government officials will meet on Thursday to discuss the sale of a non-controlling stake in post office group Poste Italiane PSTIT.UL as part of efforts to reduce the country's massive debt, government sources said.

Prime Minister Enrico Letta's economic advisor, Deputy Industry Minister Antonio Catricala and Poste Italiane Chief Executive Officer Massimo Sarmi are among those who will discuss selling as much as 40 percent of the postal service, which is wholly owned by the government, sources said.

The aim is to sell a stake of the umbrella group, rather than shares in its individual banking or insurance units, by the end of this year, the sources said. Italy's debt, expected at 132.8 percent of gross domestic product in 2014, is surpassed only by Greece in the European Union.

In November, Letta announced plans to raise as much as 12 billion euros through the sale of stakes in public entities including oil and gas group Eni (ENI.MI), air traffic controller Enav and shipbuilder Fincantieri.

It was unclear how much the post office stake sale would raise.

Italy has promised for years to divest some of its extensive corporate holdings but has had little to show for it. However, growing pressure from the European Commission to begin reducing a debt pile that has shot up in the recession of the past two years has added urgency to the plans.

Selling the post office stake this year would help Letta's aim of cutting the debt from 2014.