CEO Pietro Labriola has been instructed to negotiate a different offer from the Ministry of Economy and Finance
Telecom Italia (TIM) has rejected the Ministry of Economy and Finance’s (MEF) offer made on 31 January. It proposed to pay €625 million to acquire TIM’s international infrastructure arm, Sparkle plus €125 million in earnouts – a share of future earnings assuming certain criteria are met.
The board of directors decided the offer was “unsatisfactory”. Apparently advisors had recommended an offer closer to €850 million.
The board gave CEO, Pietro Labriola, the mandate to negotiate a different option, including possible adjustments to the contractual conditions.
The renegotiation is on the basis that TIM maintains a stake of about 15% in the company for a specified time to oversee implementation of the strategic plan. Ultimately, TIM would sell its stake.
The MEF offer is effective for 15 days. TIM’s board is to meet again on 14 February to approve the 2023 accounts. It might receive a fresh offer by then.
Later in the year, TIM is proposing to slim down its board from 15 to nine directors.