Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 04 19T084125Z 1 LYNXMPEJ3I08U RTROPTP 4 TELECOM ITALITA RESULTS - Business Express

TIM shares slide as reported grid bids disappoint


TIM shares slide as reported grid bids disappoint

ROME/MILAN (Reuters) – Shares in Telecom Italia (TIM) tumbled more than 5% on Wednesday on disappointment at the reported valuation of new offers for its landline grid and submarine cable unit Sparkle.

Analysts voiced concern that the bids fell well short of what leading TIM shareholder Vivendi is seeking and that a swift resolution of the latest effort to reshape the former phone monopoly appeared unlikely.

TIM said late on Tuesday it had received new non-binding bids from both KKR and rival Cassa Depositi e Prestiti (CDP), which is working with Macquarie.

TIM gave no further details, adding its board would review the bids on May 4.

According to two sources close to the matter, Italian state lender CDP and partner Macquarie offered 19.3 billion euros ($21.2 billion) for the assets.

KKR’s bid amounts to 21 billion euros, including 2 billion euros if certain goals are met, another source close to the matter said.

Both bids were around 1 billion euros higher than the reported initial offers from the rival camps.

Intesa Sanpaolo noted that the bids remained far from the 31 billion euro figure sought by Vivendi, which is TIM’s top shareholder with 24% of the company.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

“We expect another interlocutory period with a situation still very fluid in terms of valuation of the asset, antitrust implications and governance issues,” Intesa Sanpaolo said.

TIM wants to sell its largest asset as CEO Pietro Labriola seeks to restructure the group, which has a “junk” debt rating and faces a steady revenue decline in its competitive home market.

Banca Akros said in a note the reported improvements on previous bids were limited, adding “the likelihood of a straight sale is not that high and other options could emerge.”

TIM shares were down 4.3% at 0810 GMT, having lost as much as 5.7% earlier in the session.

($1 = 0.9114 euro)

 

(Reporting by Elisa Anzolin, Alessandro Parodi and Giancarlo Navach; Writing by Alvise Armellini and Keith Weir; Editing by Jonathan Oatis and Mark Potter)

 

Recent Post: