Italy’s CDP bids for TIM network to rival KKR approach | – #Italys #CDP #bids #TIM #network #rival #KKR #approach
MILAN, March 5 (Reuters) – Italy’s state lender CDP said on Sunday that its board has approved a deal for former phone monopoly Telecom Italia (TIM)’s ( TLIT.MI ) fixed-line network. mandatory confirmed the non-existent offer and added that it would be valid. Until March 31.
CDP has teamed up with Australian infrastructure fund Macquarie ( MQG.AX ) to bid for all of Italy’s most important telecoms infrastructure.
Together offer It targets TIM’s landline network and Sparkle’s submarine cable division. USA‘s investment company KKR (KKR.N) has already submitted an offer to buy a controlling stake in the same entity.
TIM said its board would discuss the CDP-Macquarie proposal “on March 15 or another date to be determined”.
Sources told Reuters in recent weeks that CDP-Macquarie and KKR are both 18 in the TIM network billion euro (19 billion dollars) have determined the enterprise value.
CDP’s offer will also include TIM’s smaller fibre-optic network competitor Open Fiber, which is owned by CDP and Macquarie and will join TIM’s network.
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Including KKR’s €2 billion profit 20 billion euros, the government and the two main shareholders of TIM – CDP and France’s Vivendi (VIV. PA).
Both figures are lower than Vivendi’s €31 billion price tag to support the sale of the chain, which TIM itself valued at €25 billion.
TIM said on Feb. 24 that KKR’s offer “does not fully reflect” the value of its asset, adding that it will be upgraded by the end of this month. offer will look for
The sale of the chain to cut TIM’s 25 billion euro debt pile and lay off half of its 40,000 local staff is a key plan under CEO Pietro Labriola’s push to reshape the group.
Prime Minister Giorgia Meloni’s government has repeatedly said it wants to take control of the TIM network while protecting jobs, but there is no consensus in the administration on how to proceed.
Under Italian regulations, Rome has the power to block unwanted interest in strategically important assets such as the TIM network.
CDP’s move is welcome as it makes the sale process more transparent, but still leaves several scenarios open, a senior government source said.
In its approach, KKR has left the door open for the state entity to be involved as a minority shareholder in TIM’s network, but it opposes CDP playing such a role due to antitrust concerns.
($1 = 0.9406 euros)
Author: Valentina Za; Edited by Louise Heavens, Emelia Sithole-Matarise, Ros Russell and Hugh Lawson
Our standards: Thomson Reuters Trust Principles.
2023-03-06 11:19:28
Source – reuters
Translation“24 HOURS”