The American investment fund has a stake in the netco; CDP’s hat could also be in the ring
The opera that is the struggle for TIM looks set to reach yet another crescendo. According to the Italian newspaper la Repubblica, KKR reportedly is preparing to make a non-binding bid for control of the Italian incumbent’s fixed line network.
KKR had made a non-binding offer for control of the netco late in 2021 which, as is the norm in this saga, was ultimately rejected after many twists and turns last April.
KKR paid €1.8 billion to secure a 37.5% stake in Fibercop, the entity that owns TIM’s fibre infrastructure.
TIM is in debt to the tune of €25.5 billion with flat revenues. However, the government has the power to veto any attempts to gain control of the netco, which is TIM’s most valuable asset, because it is classed as strategic infrastructure.
Changing circs
The change in Italy’s government last autumn has added another dimension to the drama, as the right-wing administration of Prime Minister Giorgia Meloni has stated it wants public ownership of the network but has also said this does not necessarily mean the infrastructure must have a single owner of a consolidated network.
Until the government came into power, the plan was to merge rival Open Fiber’s infrastructure with that of Fibercop to create one national fibre network.
Meanwhile, Reuters reports that a source close to Vivendi said it is mulling a possible offer from the state-backed bank, Cassa Depositi e Prestiti (CDP), of €24 billion for the network but does not like the price. Previously, CDP had valued Fibercop at €18 billion whereas Vivendi’s valuation was €30 billion if the network was to be sold off.
Vivendi is the single biggest shareholder in the Italian operator with 23.75%, and CDP the second largest with a 10% stake.
Stay tuned for the next act.