Telecom Italia’s (TIM) top investor Vivendi would oppose a sale of the Italian phone group’s fixed network that undervalues TIM’s main infrastructure asset, and would be ready to assess other options, the CEO of the French group said.
“I want to be clear on the subject of the value of the network,” Vivendi Chief Executive Arnaud de Puyfontaine told daily la Repubblica in an interview published on Wednesday.
“Vivendi will never support the sale of the network at analysts’ estimated value [of between 17-21 billion euros] and this is in the best interest of TIM.”
TIM and state lender CDP on Sunday signed a preliminary accord to create a domestic broadband champion under a plan that would see TIM spin-off its landline grid before it is merged with the network of CDP-controlled broadband rival Open Fiber.
“If the real value (of TIM’s network) is not recognised, given we are a long-term industrial investor, we are ready to evaluate other opportunities,” de Puyfontaine said.
TIM has put a price tag of about 20 billion euros including debt on the landline grid, two sources with knowledge of the matter told Reuters on Tuesday.
De Puyfontaine said that the long-awaited plan to combine TIM’s fixed line with that of Open Fiber was “the main road” in terms of business strategy for TIM, “but not the only one.”
CDP – which is TIM’s second-largest investor with a 10% stake and also owns 60% of Open Fiber – is set to control the combined network.
TIM and CDP aim to sign a binding deal by the end of October.
Source: Reuters.com