Sara Bennewitz
MILANO — The results of the first nine months of Telecom Italia and the perspective of a return to the suspended dividend from 2020yesterday they have caused ordinary shares to rise on the stock market by 8.15% to 0.23 euros, as rnc by 6.7% to 0.27 euros. «With the presentation of the 2024-2026 plan, without considering extraordinary proceeds, they said that in February 2025 we would evaluate the possibility of returning to remunerating the members – he said yesterday CEO Pietro Labriola during the call with analysts –. If we will have extraordinary proceeds then next February with the 2025-2027 plan there could be an acceleration in this direction.”
New disposals coming soon
And the extraordinary proceeds are on the way: the sale of Inwit will close by November for 250 million, already in December there could be news on the case against the Mef for the reimbursement of the fee of approximately one billion euros, and to early 2025 si will know more about the non-binding 700 million offer are Sparkland, made by the Mef (70%) together with Retelit (30%) which is controlled by the Asterion fund. Labriola also remains confident of collecting the price adjustment for the sale of the network to KKRin view of the marriage with Open Fiber, which could bring another 2.4 billion into Tim’s coffers. «We have an exclusivity agreement to use the network where Fibercop is located – specified Labriola -. Where only Open Fiber is offered we can use their infrastructure. Our the objective is to optimize our cost base, but I am confident in the possibility of collecting the earn outs for the single network».
Green light from the government for 660 million for Open Finer
Meanwhile, yesterday Open Fiber breathed a sigh of relief because it was the amendment recognizing the company 660 million euros over three years was approved for the rebalancing of the financial plan in the white areas. While waiting for Tim’s new plan which Labriola is already working on and which he will present in February, Tim Rnc shareholders have written a letter to request a meeting with the management, hoping for a partial takeover bid or a buy back of the savings shares, which also cumulate three arrears of dividends (equal to 8.25 euro cents).
Finally, yesterday the hearing was held at the Civil Court of Milan to decide on the appeal presented at the end of 2023 by Vivendi (first shareholder of the company with 23.75% of the capital) against the resolution with which the TIM board of directors approved the sale of the network to KKR, without going through the shareholders’ meeting. At the end of the hearing iThe panel chaired by Angelo Mambriani, with judge Daniela Marconi, reserved the right to decide within 60 days.
Telecom Italia’s Rollercoaster: A Dividend Delayed, But Not Denied!
Sara Bennewitz
MILANO — Now, gather ‘round, financial aficionados! Because yesterday was a wild ride on the stock market rollercoaster for Telecom Italia. Ordinary shares leapt by a staggering 8.15% to €0.23, while RNC shares jumped 6.7% to €0.27! If only my love life had the same upward trajectory…
Promises, Promises! But When’s the Pay Day?
CEO Pietro Labriola strutted his stuff during the analysts’ call like he just won a game of Monopoly. He hinted that by February 2025, we might be blessed with the return of dividends—those sweet, sweet rewards we’ve all been waiting for since 2020. That’s a long time in the world of finance, or as I like to call it, ‘a lifetime without a decent espresso’! But he warned—no extraordinary financial windfall means we’ll just keep twiddling our thumbs.
New Disposals Coming Soon: A Comedy of Sales
Speaking of windfalls, there’s more to come! Brace yourselves: the sale of Inwit is anticipated to close by November for a cool €250 million. And if you thought that was pocket change, there may be news of a case against the Mef for the reimbursement of a billion euros in December. That’s enough money to fund a small country or, you know, pay back your long-lost friend with an expenses tab from 2015!
Fast forward to early 2025, and you could witness a €700 million offer from Sparkl and Retelit, along with the promise of a few more billion if the exclusive agreement with KKR pays off. Labriola is over here looking more confident than a cat walking on a hot tin roof. Let’s hope that ‘optimizing their cost base’ doesn’t entail more difficult meetings over instant coffee!
The Government Sees Green: €660 Million for Open Fiber!
Meanwhile, news just in! Open Fiber can now breathe a sigh of relief, having bagged €660 million from the government over three years. It’s like winning the lottery but without the glamor, the splashy parties, or the impractical rockstar lifestyle. Tim’s shareholders, however, seem to think they are due for a bit more action, penning letters requesting a chat about a possible buyback of saving shares with a dividend backlog of 8.25 euro cents. It’s like begging your boss for a raise while also asking for the unpaid hours you worked last summer!
A Legal Circus: Vivendi Vs. Telecom Italia
Lastly, let’s not forget the legal drama. Yesterday, a Milan court entertained an appeal from Vivendi, who holds a hefty 23.75% of Telecom Italia. They aren’t happy about the board’s approval to sell the network without letting shareholders have their say first. It’s courtroom drama at its finest, with judges deciding the fate of billions and a hastily drawn courtroom sketch for the tabloids. The jury, or rather the panel, will deliberate for 60 days. So, stay tuned; it’s cheaper than Netflix!
So, what’s the takeaway from this financial comedy? It’s a rollercoaster of financial speculation, legal tussles, and hopefully, a spark of joy for investors longing for those dividends. Just remember: in the world of Telecom Italia, fortune favors the bold… and those with exceptionally good lawyers!
Sara Bennewitz
MILANO — The financial performance of Telecom Italia over the initial nine months of the year has generated significant market interest, prompting a notable surge in ordinary shares by 8.15% to 0.23 euros, while rnc shares climbed by 6.7% to reach 0.27 euros. «With the presentation of the 2024-2026 plan, excluding extraordinary proceeds, we indicated that in February 2025 we would assess the possibility of reinstating dividend payments to shareholders,» stated CEO Pietro Labriola during a recent call with analysts. He added, «If extraordinary proceeds materialize, we may see an acceleration in this direction in the upcoming review for the 2025-2027 plan scheduled for next February.»
New disposals coming soon
Anticipated extraordinary proceeds are on the horizon: the sale of Inwit is set to finalize by November for a valuation of 250 million euros. Furthermore, by December, there could be important updates regarding the ongoing case against the Ministry of Economy and Finance (Mef) concerning the reimbursement claim of approximately one billion euros. By early 2025, additional information is expected regarding the non-binding offer of 700 million euros from Sparkl, made by the Mef (70%) in collaboration with Retelit (30%), which is controlled by the Asterion fund. Labriola also expresses optimism regarding the collection of the price adjustment linked to the network’s sale to KKR, especially in light of the potential merger with Open Fiber, which may inject another 2.4 billion euros into Telecom Italia’s finances. «We have an exclusivity agreement to utilize the network where Fibercop operates,» Labriola detailed. «In regions where only Open Fiber exists, we are permitted to leverage their existing infrastructure. Our goal is to optimize our cost base, and I am optimistic about the possibility of securing the earn-outs for the unified network.»
Green light from the government for 660 million for Open Fiber
Meanwhile, in a significant development, Open Fiber received reassurance as the amendment granting the company 660 million euros over a span of three years was approved to help rebalance its financial plan in underserved areas. As Tim prepares a new strategic plan that Labriola is currently developing for presentation in February, Rnc shareholders of Tim have formally requested a meeting with management. They are hopeful for discussions surrounding a partial takeover bid or a buyback program for the outstanding savings shares, which have accumulated three arrears of dividends totaling 8.25 euro cents.
In a separate legal matter, a hearing was conducted at the Civil Court of Milan regarding the appeal filed at the end of 2023 by Vivendi, the largest shareholder with a 23.75% stake in the company, challenging the TIM board of directors’ resolution to sell the network to KKR without the consent of the shareholders’ meeting. The panel, presided over by Angelo Mambriani and Judge Daniela Marconi, has reserved the right to provide its decision within 60 days.
What are the financial implications of the price adjustments linked to the sale of Telecom Italia’s network to KKR, especially in light of the anticipated merger with Open Fiber?
The collection of price adjustments linked to the sale of the network to KKR, especially considering the anticipated merger with Open Fiber that could inject an additional 2.4 billion euros into Telecom Italia’s finances. “We have an exclusivity agreement for utilizing the network where Fibercop operates,” Labriola noted, adding that on sections where only Open Fiber exists, their infrastructure can be utilized. “Our aim is to optimize our cost base, and I am confident about optimizing our revenue through these networks,” he concluded.
Green Light from the Government for Open Fiber
Open Fiber recently received a significant boost, as the amendment approving a three-year financial allocation of 660 million euros to help balance its financial plan in less populated (white) areas was officially sanctioned. As Labriola prepares to unveil Telecom Italia’s new strategic plan in February, shareholders are also taking an active stance. They have sent a letter requesting a meeting for discussions surrounding a potential partial takeover bid or a buyback of savings shares, which come with a dividend backlog of about 8.25 euro cents.
Legal Affairs: Vivendi Vs. Telecom Italia
In a recent legal turn, Vivendi, which holds a substantial 23.75% stake in Telecom Italia, launched an appeal challenging the TIM board’s decision to approve the sale of the network to KKR without a shareholder vote. The Civil Court of Milan heard the appeal, and the panel, chaired by Judge Angelo Mambriani, is set to make a decision in the coming 60 days. This legal battle adds another layer of complexity to Telecom Italia’s ongoing transformation and could have significant implications for its governance and shareholder rights.
Telecom Italia is navigating financial recovery and strategic repositioning amid market volatility, legal challenges, and the hope of reviving dividends. With external support and potential lucrative sales on the horizon, the company might just be on the brink of a recovery that could delight investors—provided the right moves are made in the coming months.
