🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Italy's CDP plans improved offer for Telecom Italia's fixed-line unit - Bloomberg

Published 28-03-2023, 03:40 pm
© Reuters
TLIT
-
VIV
-
MQG
-
KKR
-

By Scott Kanowsky 

Investing.com -- Shares in Telecom Italia (BIT:TLIT) gained on Tuesday after Bloomberg News reported that Italian state-owned lender CDP is planning to improve its offer for the carrier's landline grid by about €2 billion (€1 = $1.0817).

The latest bid from CDP - short for Cassa Depositi e Prestiti - could now value the fixed network unit at over €20B, the Bloomberg report said, citing people familiar with the situation. However, these people flagged that no final decision has yet to be made and the terms of a possible offer may change, Bloomberg reported.

Earlier this month, TIM's board called on CDP, as well as rival suitor KKR (NYSE:KKR), to outline fresh proposals for the division by April 18.

CDP previously teamed up with Australian infrastructure fund Macquarie (ASX:MQG) to put forward an initial plan that called for TIM's network assets to be brought together with its smaller peer Open Fiber. CDP already has a 10% stake in TIM, while both CDP and Macquarie are investors in Open Fiber.

Meanwhile, KKR, a New York-based private equity firm that previously snapped up a stake in TIM's fixed network, reportedly delivered a non-binding bid of up to €20B.

The competing offers for the grid come as TIM Chief Executive Officer Pietro Labriola looks to cut down on the size of the former national phone monopoly's approximately €25B debt pile as part of a wider overhaul of the company.

Analysts at Bryan Garnier noted that while CDP's raised offer improves the chances of an eventual deal being reached, its newest bid remains below the ambitions of TIM's top investor Vivendi SA (EPA:VIV). Media reports have suggested that the French media conglomerate wants to see a price tag of €31B for the grid in order to back any sale.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.