TIM shares fell as much as 8% to hit a three month low, the worst performer on Italy's bluechip index.

Analysts pointed out that the forecast debt level of the venture emerging from the planned sale of TIM's domestic fixed line network was above market expectations.

"The leverage target of 1.6-1.7 times [the company's core earnings] implies some 900 million euros increase from the proforma level at end 2023 of 6.15 billion euros," Intesa Sanpaolo analyst Andrea de Vita wrote in a research note.

Analysts also noted the company had not included in the outlook any dividend distribution plans in the statement issued late on Wednesday.

The higher than expected debt level might be linked to cash outflows for the Brazilian business's dividend policy, as well as to financial charges and restructuring costs, according to Equita's Domenico Ghilotti.

TIM will host an investor day later on Thursday, giving details of the three-year strategy, which includes an 8% rise in its core earning on a compound annual basis over the next three years.

Worth up to 22 billion euros ($24 billion) and backed by the Italian government, the sale of TIM's network to KKR is the central plank of CEO Pietro Labriola's efforts to reshape the group.

(Reporting by Elvira Pollina; Editing by Keith Weir)