Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Telecom Italia plan for revamped business is sustainable, minister says

Published 03/14/2024, 01:03 PM
Updated 03/14/2024, 02:02 PM
© Reuters. FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/FILE PHOTO

MILAN (Reuters) -Telecom Italia's (TIM) business plan for the new company emerging from the sale of the former phone monopoly's fixed line network is sustainable, Italy's Industry Minister Adolfo Urso said on Thursday.

Shares in the former phone monopoly plunged last week after TIM unveiled its three-year strategy and outlook for the business emerging after the network sale to U.S. fund KKR, piling pressure on TIM Chief Executive Pietro Labriola.

Backed by the Italian government and worth up to 22 billion euros ($24 billion), the deal is opposed by TIM's top investor Vivendi (OTC:VIVHY), which has questioned the sustainability of the remaining business and is fighting the sale in court.

"We believe the project presented in the business plan is absolutely sustainable", Urso said during a press conference at the end of the G7 industry summit in Verona.

In a separate statement, KKR said it is pressing ahead with preparatory activities for the buyout of TIM's network and working with other parties towards the summer 2024 timeframe for finalising the deal, which is subject to European Union antitrust authorisation.

"The preparatory activities....are advancing well in cooperation with the TIM management team," a spokesperson for the U.S. fund said.

"All parties are still working against the summer 2024 timeframe for closing."

($1 = 0.9186 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.