Telecom Italia looking at network valuation of at least 25 billion euros-sources

0
8

MILAN (Reuters) – Telecom Italia (TIM) is looking to fetch a valuation of at least 25 billion euros ($26 billion) together with debt for its grid below a plan to separate its fixed-line belongings from its companies arm, two sources near the matter stated.

The price ticket is nearer to the 31 billion euro determine sought by TIM’s prime shareholder Vivendi in any potential network deal than preliminary estimates offered by two sources consistent with analysts estimates.

In May sources had instructed Reuters TIM has began looking at a valuation of round 20 billion euros, together with debt and earlier than any synergies, in a possible network deal.

The former telephone monopoly might promote its home mounted entry network and its submarine cable unit Sparkle as half of a government-sponsored venture to create a unified broadband firm with state backed rival Open Fiber.

Valuation is a key subject in ongoing talks with state lender CDP to mix TIM’s network with Open Fiber, which is majority owned by CDP.

CDP can be the second largest investor in TIM.

TIM’s board will meet on Wednesday to debate a marketing strategy centred on the break up of its mounted network belongings from its service companies. ($1 = 0.9707 euros)

(Reporting by Elvira Pollina; Editing Valentina Za, Alexandra (*25*))



Source link