Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Italian election frontrunner wants state lender to take control of TIM

Stock Markets Aug 05, 2022 10:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS/Yara Nardi/File Photo 2/2

By Giuseppe Fonte and Elvira Pollina

ROME (Reuters) - The far-right Brothers of Italy party, leading polls ahead of next month's election, is calling for state lender Cassa Depositi e Prestiti (CDP) to take control of Telecom Italia (BIT:TLIT) (TIM), a party official said on Friday.

Under new CEO Pietro Labriola, former phone monopoly TIM is seeking an overhaul of its business centred around ceding control of its landline grid to CDP to raise cash and cut its debt pile.

CDP would in turn merge TIM's network assets with those of smaller rival Open Fiber. The state lender, which owns a 60% stake in Open Fiber, is also TIM second largest investor behind French group Vivendi (OTC:VIVHY).

However, Alessio Butti, lawmaker and responsible for telecoms policy in Giorgia Meloni's Brothers of Italy, said in a statement that his party was against any plan to sell TIM's infrastructure.

"We need a different scheme that protects TIM's workers, with CDP holding a majority and controlling stake so as to secure the Italian network management," Butti said.

"We are strongly against the plan to sell TIM's landline grid," he added.

Finding a long-term fix for TIM's woes has been a long-running problem for the company and its stakeholders.

Italy's biggest telecoms company is saddled with 24.6 billion euros of net debt while contending with shrinking revenue in its fiercely competitive home market.

The latest plan involves shedding thousands of jobs from a domestic workforce of more than 40,000.

Labriola on Thursday said talks on the single network project had not been halted by the collapse of Prime Minister Mario Draghi's government, which paved the way for snap national election on Sept. 25.

CDP was not immediately available for comment.

In recent weeks, Brothers of Italy has repeatedly asked CDP to stop talks with TIM until a new government is in place.

Under a non binding pact sealed in May, CDP is expected to submit a preliminary bid for TIM's network in the coming weeks, with the aim of clinching a final deal by the end of October, sources have said.

Butti said his party was not opposed to the creation of a single broadband network combining TIM's network assets with those of Open Fiber but the party wanted this to be the focal point of TIM's operations going forward.

Italian election frontrunner wants state lender to take control of TIM
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email