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

Telecom Italia sounds out investor interest as govt reviews network options

Stock Markets Dec 09, 2022 06:19AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS/Yara Nardi/File Photo
 
TLIT
-1.22%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
VIVHY
-1.85%
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 (Reuters) - Telecom Italia (BIT:TLIT) (TIM) is exploring investors' interest in buying into its assets, sources familiar with the matter said on Friday, as officials within Italy's right-wing government seek agreement on how to fix the debt-crippled company's woes. Italy's government last month said it would seek to identify "the best market-friendly options" by the end of the year for struggling TIM, placing a planned bid for the phone group's grid by state lender CDP on hold.

The mooted multi-billion deal, part of a wider project to create a unified Italian network company with CDP's broadband unit Open Fiber, was a focal point of CEO Pietro Labriola's strategy to break up TIM into several units and cut its 25 billion euros ($26.4 billion) debt pile.

Labriola is looking to prepare for any outcome of talks within the government. The executive has been working in particular with U.S. fund KKR recently, three sources familiar with the matter told Reuters. The U.S. fund, which already owns a stake in TIM' last-mile network and had an attempt to take over TIM as a whole rejected this year, has recently renewed its interest in tightening its grip on TIM's landline grid, the sources said. TIM has also had contacts with other potential investors interested in buying into its domestic service operations, including French telecoms group Iliad and Poste Italiane, the people said.

Any deal involving foreign investors and TIM assets will be subject to government scrutiny under "golden power" regulation, which gives Rome the possibility to block the transaction.

According to the sources, at least two suitors have expressed interest in TIM's Brazil-listed subsidiary, TIM SA However, in Labriola's view, the sale of a unit generating some 30% of the group's core profit could be dangerous for TIM's credit rating, unless it is pitched at a premium valuation, according to the people. Telecom Italia, KKR, Poste and Iliad all declined to comment.

Discussions within Prime Minister Giorgia Meloni's administration centre on how to win control of TIM's prized landline grid, an asset deemed as strategic. The government has yet to kick off talks with TIM's stakeholders - including top investor Vivendi (OTC:VIVHY). Raising cash to cut debt and shore up its finances is key for TIM, which has been under pressure for years in its fiercely competitive domestic market and has been hit by multiple credit rating downgrades into junk territory over the past year.

($1 = 0.9475 euros)

Telecom Italia sounds out investor interest as govt reviews network options
 

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