Telecom Italia, CDP start network talks as KKR bid falters



* TIM, CDP sign non-disclosure agreement for formal talks

* TIM, CDP-controlled Open Fiber seek to merge networks

* KKR will not pursue any bid without due diligence -source

By Elvira Pollina

MILAN, April 3 (Reuters) - Telecom Italia (TIM) TLIT.MI has signed a non-disclosure agreement with Italian state lender CDP to start formal talks on potentially combining the phone group's network with that of smaller broadband rival Open Fiber.

The move comes as TIM boss Pietro Labriola presses ahead with a plan to revamp Italy's biggest phone company centred around a split of its wholesale network operations from its service business.

The start of talks, announced by the company on Saturday, is yet another sign that TIM plans to chart a different course to a non-binding approach for all of its business made by U.S. fund KKR KKR.N in November.

TIM kept KKR waiting for four months before agreeing in March to engage in talks, while pressing ahead with its standalone reorganisation to unlock what the group calls its "untapped value".

A source familiar with the matter said KKR will say in a letter on Monday that it will not pursue a formal bid unless TIM grants it the due diligence the fund has been requesting for months, which has become more crucial as the market situation changes due to the Ukraine conflict.

TIM, which asked KKR to say whether the terms of its 10.8 billion euro approach were still valid, has said the review can only be confirmatory in nature, meaning it would have to be preceded by a formal offer.

TIM's board is expected to discuss KKR's letter and a separate proposal from private equity firm CVC for a stake in its enterprise service business on April 7.

SINGLE GRID

Rome has been keen to merge TIM's fixed assets with those of Open Fiber to avoid costly duplication of investment needed to upgrade the national network, but a deal has proven elusive due to antitrust issues.

TIM said it is aiming to agree with CDP by April 30 a memorandum of understanding to define the objectives, structure and main evaluation criteria for the integration project.

Open Fiber is 60% owned by CDP, which in turn also owns 10% of TIM. Under the tie-up plan, state-owned CDP would get control of the merged network, sources have said, which could ease antitrust issues as TIM would no longer hold a majority.

Sources have said TIM might later agree a compromise with KKR by involving the fund in its plans for the Open Fiber tie-up. KKR already owns a 37.5% stake in TIM's last-mile network.
Reporting by Elvira Pollina and Agnieszka Flak Editing by Alison Williams, Mark Potter, Kirsten Donovan


Mga Kaugnay na Asset


Pinakabagong Balita

Factors to watch - July 7


Cost-of-living crisis driving 'breathtaking' surge in extreme poverty -UNDP


Gold prices firm as dollar rally pauses

G
S

Australian dollar gets some reprieve from record trade data

A
A
E
N

Stocks in the doldrums as euro founders on recession fears

E
U
G
J
U
O
B

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Maaaring malugi ang iyong kapital. Maaaring hindi nababagay sa lahat ang mga produktong naka-leverage. Mangyaring isaalang-alang ang aming Pahayag sa Risk.