2023-08-11 15:14:00
It’s a “positive news”. This is how Vivendi, the main shareholder of Telecom Italia, described the agreement concluded between Rome and the American investment fund KKR, a source close to the French media giant told AFP on Friday.
This agreement, signed Thursday by the Italian government with KKR, concerns the joint offer between the two players for the acquisition of the fixed network of the operator Telecom Italia (TIM), announced the Ministry of the Economy, which intends to take a share going “up to 20%” in the future TIM company bringing together its fixed network and its submarine cable subsidiary. Its stake is valued at some two billion euros.
Telecom Italia suffers heavy losses amid uncertainty over the sale of its network
The nationalist government led by Giorgia Meloni has also made it known that it intends to play ” a determining role in the definition strategic choices about the TIM network. The Italian State is Telecom Italia’s second largest shareholder, through the 9.81% stake held by the Italian Caisse des dépôts (CDP).
“An essential conversation”
“Direct Government Engagement” Italian is a “positive news”. However, “to arrive at concrete and achievable solutions, the opening of a serious dialogue with Vivendi is necessary”said the source close to Vivendi. “A discussion is now essential to find the best solution for the company and for all its shareholders, whose interests Vivendi will continue to represent with the greatest determination”she pointed out.
After months of suspense, TIM had opted at the end of June for the offer of the KKR fund for the takeover of its network, and entered into exclusive negotiations with it. KKR’s proposal, which under certain conditions reaches around 23 billion euros, was deemed more advantageous than the competing offer from CDP, which was around 19.3 billion euros. But KKR’s offer fell far short of expectations from Vivendi, which owns a 23.75% stake in Telecom Italia and had estimated the value of the fixed network at 31 billion euros.
Last May, the incumbent transalpine operator reported disappointing results for the first quarter of 2023. The losses turned out to be much higher than analysts expected. They have, in fact, tripled to 689 million euros in the first quarter compared to the same period last year.
Telecom Italia suffers heavy losses amid uncertainty over the sale of its network
(With AFP)
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