Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Italy seeks fresh options for TIM as bid for network seen fading

Stock Markets Nov 28, 2022 05:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Telecom Italia new logo is seen at the headquarter in Rozzano neighbourhood of Milan, Italy, May 25, 2016. REUTERS/Stefano Rellandini//File Photo
 
TLIT
-1.22%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ISNPY
-4.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Elvira Pollina and Giuseppe Fonte

MILAN/ROME (Reuters) -Italy's new government will likely need to seek fresh options for ailing former phone monopoly Telecom Italia (BIT:TLIT), as a planned bid for its landline grid by state lender CDP appears increasingly unlikely.

Championed by the previous government of Mario Draghi, the multi-billion-euro bid is part of a broader project to combine TIM's network assets with those of smaller rival Open Fiber to create a unified broadband champion under CDP's control.

Due by this Wednesday, Nov. 30, an offer would also be central to TIM CEO Pietro Labriola's plan to break up the struggling phone group to cut its 25 billion euro ($26 billion) debt.

But Italian Prime Minister Giorgia Meloni favours putting CDP's bid on hold, a government source told Reuters on Monday.

Three separate sources had previously said CDP was unlikely to meet Wednesday's deadline, with a fourth source saying CDP had not scheduled a board meeting yet to approve an offer.

Meloni's office and the Treasury did not immediately respond to requests for comment.

Marking a break with the past, Meloni on Friday entrusted the government's broadband strategy to cabinet undersecretary Alessio Butti, who has openly criticised CDP's plans for TIM.

Butti has called instead on Treasury-owned CDP to take over cash-bleeding TIM in full to then sell its service operations, including its Brazil-listed unit.

Economy Minister Giancarlo Giorgetti last week said Butti's plans required extensive discussions within the government, which had "several options" to secure control of TIM's network.

Analysts say coming up with a new plan to combine TIM and Open Fiber would require at least a year, leaving TIM's fate in doubt at a time when rising rates increase the drain on the group's cash flow from interest payments.

"The timing to find a path starts to narrow considering that TIM's available liquidity covers debt maturities until mid-2024 and debt refinancing looks tougher than in the past." Intesa Sanpaolo (OTC:ISNPY) wrote in a research note.

($1 = 0.9549 euros)

Italy seeks fresh options for TIM as bid for network seen fading
 

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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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