Mar.23, 2010, 4:23 P.M. ET

MILAN (Dow Jones)--Telecom Italia SpA (TI, TIT.MI) said Tuesday its top executives will ask the board members meeting Thursday to postpone for the second time the approval of 2009 results until April due to a probe into alleged money laundering and tax fraud involving its cable unit Sparkle.

Italy's largest telecommunications operator said extra time is needed to further understand the legal and actuarial ramifications of the judicial probe.

"The postponement, among other things, will provide additional time for the outcome of the legal and accounting review relating to Telecom Italia Sparkle and initiated by the company to be obtained," Telecom Italia said in a statement.

The new delay, which would also postpone the board's approval of Telecom Italia's three-year plan update, adds uncertainty to the company's future strategy.

Telecom Italia had sought to sell Sparkle as part of plans to cut its EUR34 billion debt.

Chairman Gabriele Galateri di Genola and Chief Executive Franco Bernabe will propose the delay at the March 25 board meeting, that was itself a rescheduled effort to approve the former Italian monopoly's 2009 balance sheet. According to their proposal, the approval of full-year results will be postponed to April 12.

A judge in Rome has set an April 7 hearing to decide whether to put Sparkle and telecom operator Fastweb SpA (FWB.MI) into temporary court administration, as part of the probe into their alleged involvement in money laundering and tax evasion.

Prosecutors allege money was laundered through fictitious international phone service purchases and sales worth more than EUR2 billion between 2003 and 2006, carried out with the knowledge of top executives at Fastweb and Telecom Italia's Sparkle unit.

Authorities seized EUR300 million of Sparkle's cash and borrowings last month as part of the probe.

Both Sparkle and Fastweb have denied any wrongdoing and say they are victims in the case.

To avoid being put under court administration, Telecom Italia's Sparkle has proposed its board appoints an independent expert to audit its system of internal controls.

Telecom Italia said last month its preliminary 2009 earnings before interest, taxes, depreciation and amortization, or Ebitda, were virtually flat on the year earlier, due to the effects of cost-cutting measures.

Asked about the possible impact of Sparkle's probe, Telecom Italia's CEO Franco Bernabe said at the time he believes the company is "fully protected" regarding events that happened in 2006 and ceased in 2007. He added he's confident that the company's position will be cleared at the end of the investigation.