Italy’s CDP can hold 70-77% of the combined broadband network under MoU paper


Telecom Italia logo is seen at the group headquarters in Rome, Italy, 22 November 2021. REUTERS/Yara Nardi

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MILAN, May 31 (Reuters) – Italian state financier CDP will have a 70-77% stake in the combined broadband network as part of the preliminary agreement signed late Sunday, Il Messaggero daily, with Telecom Italia (TLIT.MI) (TIM). reported on Tuesday.

The plan aims to combine TIM’s fixed network with that of CDP-controlled broadband competitor Open Fiber as CEO Pietro Labriola seeks to revitalize TIM’s fortunes by completely separating fixed network from service operations. Continue reading

The long-awaited preliminary agreement was also signed by infrastructure funds Macquarie (MQG.AX) and KKR (KKR.N), which hold minority interests in Open Fiber and TIM’s last-mile network unit, respectively.

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According to Il Messaggero, Macquarie and KKR will own 12-15% and 10-13% respectively of the combined company, while Fastweb, the unit of Swisscom (SCMN.S), will receive 1-1.5% of the shares.

Italy is striving to create a single broadband network champion to avoid duplication of investment and accelerate fiber rollout and digitization of its economy.

CDP also controls regulated gas and electricity grid companies Snam (SRG.MI) and Terna (TRN.MI).

Debt-ridden TIM, which has struggled in its fiercely competitive domestic market for years, is trying to raise cash by spinning off its fixed-line network, an asset analysts value at €15-20 billion.

($1 = 0.9302 euros)

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Reporting by Cristina Carlevaro, editing by Agnieszka Flak

Our standards: The Thomson Reuters Trust Policy.


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