TIM (TLIT.MI) directors will meet on Thursday to discuss how to respond to multi-billion proposals for the phone company’s landline infrastructure as major investor Vivendi (VIV.PA) questions the group’s direction.
CEO Pietro Labriola’s strategy to reduce TIM’s 25 billion euros ($27.6 billion) debt and restore its domestic business involves selling its fixed network and submarine cable firm Sparkle.
KKR (KKR.N) and a partnership of Italian state lender CDP and Macquarie raised their original bids by 1 billion euros, sources said. KKR’s deal includes a 2 billion euro performance reward.
Despite Vivendi’s call for TIM to end the bidding process due to the large price gap, other sources told Reuters that TIM would make offers.
According to TIM’s sources, KKR’s proposal is stronger due to its efforts to strengthen the parameters of its offer beyond the headline sum.
Both offers for TIM’s most valuable asset were far below Vivendi’s 31 billion euros and market expectations.
Since April 18, Telecom Italia shares have fallen 21%.
In recent months, French media giant Vivendi, which owns 23.8% of TIM, has relinquished its board seats and called for changes to the group’s management as part of an alternative plan with the Italian government.
Last month, stated her right-wing administration will not meddle in the network sale process but is on alert to protect the national interest.
Comment Template