© Reuters.
Written by Alessandro Albano
Investing.com – The idea of an offer to take over 100% of Telecom Italia (BIT:) is fading after the words of the prime minister’s agent in charge of TLCs, Alessio Butti, effectively turned off the lights on the totalitarian advance on the former monopolist.
And the market makes it clear how it thinks: in the afternoon, the stock lost 5.5% against EUR 0.2058.
“Continuing to talk about an attempted totalitarian takeover is a fantasy,” the undersecretary said on the occasion of a meeting in Rome, specifying that the government’s goal “is to ensure public control of Tim’s immutable network,” even if the methods “still stand.” to be defined.”
The words come on the same day that Tim’s board was supposed to decide something on the letter of intent submitted in May by Cdp and ends the day after various extensions in recent months, in which networks were proposed to integrate with Open Fiber after NetCo and ServiceCo networks shipped.
But after deadlock with the unions, the Minister for Enterprise and Made in Italy issued a memorandum on the eve of today’s board meeting, postponing the decision on CDP’s offer to merge the networks “by December 31”.
A stalemate keeps the future of the corporate structure in suspense as CEO Labriola’s industrial plan provides for a network separation into NetCo, i.e. fixed network infrastructure assets, from ServiceCo which will control TIM Consumer, TIM Enterprise and TIM Brazil divisions.
A spin-off, according to plans the board approved months ago, is a precursor to bundling TIM’s infrastructure assets with the network controlled by Open Fiber.
In order to break the deadlock, many rumors have been circulating in recent weeks about a possible takeover offer by CDP for Tim, but even here with many doubts as to what part of the new company, if it is 100% as the market would like or if, exactly As favored by Palazzo Chigi, just NetCo to ease the pressure on CDP costs, and thus on the state.