MILAN, April 12 (Reuters) - Telecom Italia (TIM) would

be left with 6.6 billion euros ($7 billion) in cash after

repaying all of its debts, if it sold its Brazilian unit and its

domestic consumer business, activist investor Merlyn Partners

calculated.

In a document outlining its vision for TIM, Merlyn - which

holds 0.5% of the group - drew up six scenarios ahead of an

April 23 shareholder vote to name new top executives at TIM.

Four of the six scenarios are built around the proposed sale

of TIM's domestic access network to KKR, an up to 22

billion euro deal promoted by TIM CEO Pietro Labriola, who is

seeking reappointment this month.

Merlyn also studied the possibility of retaining the fixed

line network while selling the domestic consumer business and

Brazilian phone carrier TIM SA.

The plan "offers an alternative path for TIM. It addresses

any contingent scenario to make sure that the much needed

deleveraging of TIM happens as soon as possible," it said.

Merlyn is challenging the reappointment of Labriola, who has

come under pressure following a record stock plunge last month

after TIM disclosed the financial outlook for the business

emerging from the network sale.

Merlyn said TIM should focus on providing high value

connectivity and digital services to big corporate clients and

public administration customers.

"This transformation will be executed by immediately

divesting from non-core operations such as TIM Brasil already in

2024 and businesses lacking competitive advantages such as TIM

Consumer by mid-2025," the document said.

Also another activist investor, Bluebell Capital Partners,

has proposed its own slate of candidates to TIM's board of

directors and an alternative strategy.

Both Merlyn and Bluebell are looking to win support from

TIM's top investor Vivendi, which has challenged the

network sale in courts and questioned the sustainability of the

business left behind.($1 = 0.9367 euros)

(Reporting by Elvira Pollina; Editing by Valentina Za)