2023-06-10 06:35:45
The Italian Caisse des dépôts and the American investment fund KKR have submitted two new non-binding offers to acquire the fixed network of Telecom Italia, announced the telecommunications operator.
The two proposals “will be examined by the board of directors of TIM during its next meetings scheduled for June 19 and 22,” Telecom Italia said in a press release, without revealing the amount of these offers. CDP, together with Australian investment fund Macquarie, and KKR had been invited by TIM in early May to submit improved non-binding offers by the June 9 deadline.
31 billion euros
By relaunching KKR and CDP, the CEO of Telecom Italia, Pietro Labriola, had taken the opposite view of Vivendi, the group’s largest shareholder, who was in favor of stopping negotiations, judging the offers largely insufficient. These new offers should always remain far from the expectations of Vivendi, which had set the bar very high by claiming 31 billion euros.
The CDP had proposed in May 19.3 billion euros against approximately 18 billion euros during a first offer, while KKR made a proposal of 21 billion euros, after 20 billion previously. CDP’s board of directors has given the green light to a new offer, the public bank confirmed in a press release. “The offer will be valid until July 30,” added the CDP, 82.7% controlled by the Italian state.
In mid-May, the CDP had hinted that there was very little room to raise its offer. “We cannot say that we will increase it,” said the CEO of the public bank, Dario Scannapieco, when asked about TIM’s request to revise the offer upwards. The Italian Ministry of Economy announced at the beginning of May that it would be ready to support a possible joint offer by CDP and KKR. Dario Scannapieco indicated not to exclude such a collaboration.
A national network under public control
Behind Vivendi, which holds a 23.75% share, the Italian State is Telecom Italia’s second largest shareholder, through the 9.81% stake held by CDP. The right-wing and far-right government coalition led by Giorgia Meloni has repeatedly stated its objective of creating “a national network under public control”.
Pietro Labriola had presented in June 2022 a strategic plan focused on the split between the fixed telephony network, put up for sale, and the service activities. The sale of the network should allow Telecom Italia to reduce its enormous debt, which climbed to 25.8 billion euros in the first quarter. The offers from CDP and KKR are aimed at the future TIM company bringing together the fixed network and Sparkle, a subsidiary of the operator which manages submarine cables.
Source AFP
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